Even two months after the EMV liability shift, many consumers still struggle to use the new card technology at the point of sale. In fact, people seem to have fewer problems using mobile payment solutions like Apple Pay, despite their relatively low adoption rates. This suggests that merchants and, more specifically, cashiers, still have a long way to go in educating consumers about how best to use their new chip cards.
This responsibility was destined to fall on cashiers and floor-level personnel at retailers sooner or later, with 2016 promising to be the year that sees the end of magnetic stripe cards at nearly all U.S. merchants in favor EMV or Near Field Communication (NFC)-based payment methods. However, retailers don't necessarily have the luxury to wait much … more
Since the October 1 liability shift, merchants across the country have rushed to adopt EMV-enabled payments systems. With this high rate of migration, the payments industry is observing an exorbitant rate of fallback transactions coming from newly deployed EMV terminals.
In these cases, chip cards presented at a chip terminal cannot be read due to technical issues with the chip. As a result, merchants are pressed to follow fallback acceptance procedures to ensure compliance with card acceptance rules. However, because these fallback procedures require merchants to revert to less secure transaction methods, such as magnetic stripe or key-entry, they must be especially careful when executing fallback purchases.
To navigate the proper fallback procedures, keep these … more
Although EMV technology has been around for decades, its relatively recent introduction to the U.S. (and the ensuing liability shift) has brought the new credit card technology to the forefront of American merchants' minds. While EMV transactions and compliance have come to dominate the merchant payment conversation as of late, another, more innovative payment technology has positioned itself to eclipse EMV as the new future of consumer payment technology: NFC.
To understand how this shift could take place, let's first take a moment to lay out the difference between these two payment methods.
EMV, which stands for "Europay, MasterCard, and Visa," is the technology behind transactions between a chip-enabled credit card and an EMV-enabled payment terminal or ATM. Chip cards have become … more
This year, more people will be paid with paycards than paper checks, according to new research from Aite Group. By 2019, the study predicts, the number of workers compensated via paycard will jump from 7 million up to 12 million while those who receive paper checks will plummet from 6 million to 2 million.
The shift comes as more and more employers are recognizing the advantages of distributing paycards rather than paper checks, for both themselves and their employees. For businesses, paycards represent a massive savings opportunity, costing about $0.35 for a payroll deposit, compared with $2.00 for a paper check, according to a study released by the New York Attorney General's (NYAG) office last year. Researchers also found that employers that switched to payroll cards … more
In the latest development of what has become a decade-long legal battle between merchants and credit card companies, several major retailers have rejected a $5.7 billion antitrust settlement. Now, a U.S. appeals court must decide whether to uphold its approval of the agreement between MasterCard and Visa and merchants despite the objections.
A lawyer for retailers including Target and Amazon urged the 2nd U.S. Circuit Court of Appeals in New York to reject the deal, saying it forces merchants to give up their rights to sue over various policies and practices.
"The defendants are trying to buy something that is not for sale," the lawyer, Thomas Goldstein, told Reuters.
On the other side, merchants who negotiated the deal believe it to be fair, providing more than just the $5.7 billion … more
The U.S. rollout of EMV chip cards continues as merchants contemplate upgrades to their card acceptance technology when conducting in-person transactions.
The EMV "liability shift" that began October 1, 2015 places the liability for card-present fraud onto whichever party is the least EMV-compliant in a fraudulent transaction. In plain English, that means that as long as a customer has an EMV card, it is the retailer's responsibility to provide the point of sale (POS) terminal to take advantage of the added security of the chip. If they do not, they would be considered at fault if a counterfeit card is used that the new technology would have been able to detect and prevent.
Here are a few reasons merchants might want to consider being an early adopter of EMV: & … more
As revolutionary as Apple Pay has been in its first year, giving iPhone owners, then Apple Watch wearers, the ability to pay with a wave of their device, it was not without its Achilles heel. For all its innovation, relying on retailers to install new point of sale (POS) hardware limited Apple Pay's adoption, rendering it unable to truly eliminate the wallets from our back pockets.
Launched at the end of September, Samsung Pay might finally hit the mark, allowing both users and retailers to better take advantage of a more universal mobile payment system. While Samsung Pay might look little different from Apple Pay, the technology running under the hood is wildly different, and it makes all the difference.
Apple Pay uses Near Field Communication (NFC) to pass … more
Your business strives to not only grow in profitability, but also in maintaining a solid customer base. All of your valuable customers depend on you in order to safeguard their personal information, which can be achieved through compliance with PCI Security Standards. In light of recent, massive data hacks, consumers across the country are growing wary of merchants' abilities to protect their financial and sensitive information.
Being PCI compliant means your customers can shop with confidence at your place of business, according to the PCI Security Standards Council. Without this compliance, your business could be in danger of canceled accounts, payment card issuer and government fines, lawsuits and more.
Despite the fact that businesses must be PCI compliant any time& … more
Dispute resolution starts with putting policies in place with clear communications designed to limit disputes from arising and when they do to handle them in proactive ways to prevent them from turning into chargebacks where cardholders escalate their dispute to their card issuer.
However, inevitably, … more
eCommerce businesses should use two built-in card security features when accepting card-not-present (CNP) transactions. When a transaction is submitted to the card payment processor, the authorization approval or decline response is able to determine three things: if the card is in good standing, if the card has been reported lost or stolen and if there are funds available to make the purchase. This approval or decline response is separate from two other responses that are available as card security features: address verification and the card verification value that is only printed on the physical card.
Address Verification Service (AVS) compares the address information that the cardholder provides during checkout to what is on record for that card number at the issuing bank. There are … more