Daylight Savings Time Equipment Update

DAYLIGHT SAVING TIME ENDS SUNDAY, NOVEMBER 5TH, AT 2:00AM!

Don’t forget to turn your clocks back one hour, and remember to do this for your payment terminals, too. See below for some quick instructions.

First Data Terminals image004.png

From “Swipe or Insert Card” Screen
  1. Tap the settings button (orange button with wrench and screwdriver icon)
  2. In the System Menu, press “Date/Time”
  3. Enter Date in MMDDYYYY format, press Enter (green key)
  4. Enter Time in HHMMSS (military time format), press Enter (green key)
  5. Press the Red “X” key until you are back at the home screen
  6. Updated Date/Time should now appear

Verifone Terminals verifone-terminal-rev.png

From “Sale Refund Void” Screen
  1. Press Enter
  2. Press F2 for Setup
  3. Enter Password (1, Alpha, Alpha, 66831), Press Enter
  4. Press More (purple key) until you see “Date/Time”
  5. At Setup Screen, press “F” key associated with “Date/Time”
  6. Enter Date in MMDDYYYY format, press Enter(green key)
  7. Enter Time in HHMMSS (military time format), press Enter
  8. Press “Clear” twice until you are back at the home screen
  9. Updated Date/Time should now appear

New Internet Security for IP Transactions

A new internet security standard went into effect on January 1st of this year. It is another layer of security to keep the bad guys out. It is called SHA 256 and it layers security exponentially.

This change only affects businesses using the internet for transmission of data, not old fashioned land lines. If you are experiencing delays or processing challenges since we turned the calendar, get in touch with us for a fast and easy solution.

Debit Card Processing and Regulation

Whenever a customer swipes a debit card at one of your POS terminals, that transaction results in an interchange fee that you must pay to the card-issuing bank. Historically, these fees have averaged about $0.44 per transaction; and like most charges, the cost is ultimately passed onto consumers.

However, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, legislators introduced the Durbin Amendment in 2010. Thanks to this bill, retail stores now pay closer to $0.21 per swipe if the card-issuing bank carries $10 billion or more in assets.

How Does the Durbin Amendment Affect Consumers?
In theory, the Durbin Amendment is supposed to save consumers money. With lower interchange fees paid by merchants, there are fewer charges to pass on to end users.

Though according to George Mason University, retail prices haven’t changed dramatically after passage of the Durbin Amendment. In fact, consumers may actually pay more due to “hidden” charges.

Unable to collect as much money through interchange fees, card-issuing banks began exploring other ways to replace an estimated $14 billion in lost revenues.

Common strategies include:

Reducing card-based perks and rewards.
Eliminating free checking and other complimentary services.
Increasing consumer banking fees.
Introducing monthly account charges, including inactivity fees and minimum threshold penalties.
What Effect Has the Durbin Amendment Had on Retailers?
Merchant reviews of the Durbin Amendment have been mixed, with opinions largely determined by retailer size and transaction amount.

Retailer Size
Once the Durbin Amendment passed, banks began consolidating their services and eliminating many of their most popular solutions. As a result, smaller retailers now have fewer banking options from which to choose.

By contrast, larger retailers often bring more clout to the negotiation table, making it easier to qualify for better rates and receive custom-designed payment solutions that are unavailable to smaller or low-volume retailers.

Transaction Amounts
When processing purchases over $38, swipe fees have gone down — about 45 percent on average. Yet when handling smaller transactions, many retailers now find themselves paying substantially higher interchange fees than they did before.

This is because most banks have abandoned traditional percentage-based pricing in favor of using maximum thresholds for smaller purchases. A $4 widget, for example, might result in a fixed charge of $0.21 instead of using 1 to 3 percent of the transaction amount.

EMV is not a law, it is not mandatory, it is a risk decision

The new rules for EMV processing take effect on October 1st, 2015.  These are simply rule changes that shift the liability from the bank that issued the card to the merchant if the merchant does not have equipment capable of reading EMV (computer chip) cards.  The only time the liability shifts is if it is a counterfeit card or, in some cases, card not received by cardholder.  The equipment needed is not expensive and in many cases may be provided at no cost.  The challenge lies with the processors and their ability to support the equipment.  It is a work in progress.

Let’s keep some perspective.  If you are a business that sells high dollar electronics, televisions, computers, etc., you definitely want to be compliant on October 1st.  If you are a business selling flowers, coffee, fast food, etc., you aren’t likely a target for someone looking to steal.  Even in the rare case they would target you (which would be extremely rare) your loss would be minimal.  So keep things in perspective when making your shift to EMV supported equipment.

Direct Payment Systems is here to help make the shift smooth and inexpensive.  Contact us for our view on how your business may or may not be impacted by this rule.

Direct News from Direct

Direct from Direct

What is all this about EMV and Apple Pay?  EMV is a globally accepted smart chip technology payment standard established by EuroCard, MasterCard and VISA in the early 1990s. EMV cards come with an embedded microprocessor (chip) that provides better transaction security, card authentication and additional application capabilities not possible with traditional magnetic stripe cards.  Apple Pay is the ability to process payments from your customer’s iPhone by having them waive it in front of your payment equipment.  It is called Near Field Communication (NFC).

Why EMV?  The migration to EMV technology in the U.S. will help:

  • Ensure that only the rightful card owner can use the chip card, protecting against lost or stolen card fraud.
  • Protect data on the chip against unauthorized changes, protecting against counterfeit fraud.
  • Enable U.S. cardholders to use their secure chip payment cards anywhere in the world.

When do merchants have to be compliant?
October 2015 is the important date to remember.  It is then that liability will begin the shift to merchants without compatible equipment.  There’s plenty of time but now is the time to begin looking for options.
Don’t get fooled.  The new equipment is not expensive.  The cost can be as little as a few dollars in some cases but will be just slightly above $200 in most.

EMV Benefits for Merchants

Increases security and fraud protection to reduce card present fraudulent transactions and charge-backs:

  • Reduces skimming at the point of sale
  • Enables increased PIN use for stronger cardholder verification
  • Helps prevent the use of counterfeit, lost and stolen cards

Improves customer service:

  • Enables PIN transactions for both credit and debit cards, reducing time needed to obtain a signature and the need for authorization referrals.
  • Supports contactless transactions which are approximately 53% faster1 than a traditional magnetic stripe card transaction.

Enables merchants to offer cardholders a secure payment of their choice:

  • Meet expectations of cardholders who want more secure payment transactions
  • Accept foreign cards that are already EMV enabled

Drives innovation in emerging consumer technologies:

  • Chip-based applications can be embedded into a mobile wallet, enabling consumers to pay via their mobile devices.
  • Chip card technology works on the same technology that enables mobile payments at the POS

Things to think about …

Are you familiar with the new EMV or chip-based payment cards?  Have you seen them?
EMV cards are the new cards that the major banks and credit card issuers will be sending out to their customers in the U.S. A few consumers have already received these new cards, however approximately 100 million EMV cards will be issued in the U.S. this year. You will definitely see more customers with this type of payment card very soon. The EMV card contains a gold microchip, which adds an additional layer of security, and will be easily recognizable to you.

Is the current terminal you use EMV- enabled?  How is the terminal that your currently use working?
We have a range of solutions from easy to use terminals to full functioning POS solutions.

Do you want to accept contactless payments such as  Apple Pay™?
Contactless payments including Apple Pay provide solutions for payment that are 53% faster1 than traditional magnetic stripe card transactions, providing faster checkouts and greater customer satisfaction.  In addition, both Apple Pay and EMV provide an opportunity to drive more innovation to the customer experience by adding emerging technologies to boost loyalty, repeat business, and improve customer satisfaction.

Things we hear in the field…

I’m a small Merchant; I don’t need to worry about card fraud.
As recently published and widely covered card breaches at several large national retailers in the US show, breaches and card fraud are extremely costly and damaging to the brand.  For a small business, an incidence of fraud can be catastrophic.  In addition to minimizing the risk of fraud merchants implementing EMV chip payments in neighboring countries, including Canada and Mexico, have reported a significant decrease in fraudulent transactions. In addition, on October 1, 2015, the merchant whose POS system is not EMV-enabled will assume full liability risk for fraudulent card-present transactions when processing chip cards on a non-EMV enabled terminal.

My bank or processor has to worry about that, I’m covered.
Companies you work with can help but it is up to you to become compliant with the EVM requirements and deadlines.

I don’t take that many payments.
Number or size of payments doesn’t matter.  The Merchant will be liable for any and all fraudulent transactions if the point of sale equipment isn’t EMV capable.

Nothing has happened yet.
The likelihood of a data breach is greater than you may think and consequences can be catastrophic.  With the move to EMV in Mexico and Canada, more fraud is migrating to the US where EMV has yet to be fully adopted.  As a case study, the Netherlands was a late adopter of EMV in Europe – they saw a 300% increase in fraud rate in 4 years2.