In this update we will be focusing on credit card processing and highlighting the new regulations implemented by Visa and MasterCard in their latest PCI DSS III for credit card data security. We have invested over $500,000 so far into RezExpert to make sure we do not contravene these new regulations.
Visa and MasterCard are now targeting businesses more with the Chip’n’Pin (EMV) technology. This will become mandatory from October. If you are not ready for this technology you will be liable for any fraudulent purchases.
There is nothing that we can do from a business standpoint to make you ready except to provide you with the most up to date information. Armed with this information you can contact your merchant service provider or bank.
One of our integrated payment processors (Nationwide) has provided us with the following.
Chip enabled credit cards (EMV) liability shift happening on the 1st of October 2015.
The true objective behind all of this is to reduce card present fraud in the electronic payments processing industry by making it harder for fraud to be committed in the first place.
This means that whichever side in the transaction has the less secure processing technology is liable for any card present fraud on a transaction run at the location. For example, if a merchant has an EMV capable machine & is presented with a non-chip card that turns out to be a fraudulent sale, the bank is liable for the fraud as they failed to upgrade their cardholder’s card to the most secure standard.
In the reverse situation if the card is a chip card but the merchant doesn’t have an EMV capable terminal, the merchant is liable for any chargebacks as a result of card present fraud.
Nationwide takes security seriously and recommends that all merchants try and upgrade to EMV capable equipment by October. However, there are sometimes instances beyond a merchant’s control that will result in an upgrade by October 2015 not being feasible.
Merchants need to determine what their risk for card present fraud is if they are going to be using equipment that is not EMV capable after October 2015.
Questions merchants need to ask themselves are:
What is my average ticket?
What is our history of chargebacks related to card present fraud?
Do we ask for identification for transaction amounts that are higher than our normal average sale?
If the exposure makes the resort uncomfortable, Nationwide can offer to place a free use EMV counter top terminal until the readers are available for all integrated Nationwide/Paytrace customers.
Please email Ray Eliante at firstname.lastname@example.org for more information with EMV in the subject line. This is very important information and we hope that you act on it by following up with your relevant merchant service providers.
Kevin Hall | Managing Director | DigitalRez Group of Companies |
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