Archives

• EMV puts card-not-present transactions at greater risk of fraud, study says

  • EMV

  December 30, 2015

  

  While the introduction of EMV payments has given brick-and-mortar stores an added level of protection against counterfeit transactions, it has put online retailers at an even greater risk of being targeted for fraud.  

  According to a report by Aite and RSA, fraudsters will not simply give up when their efforts are thwarted at physical shops. Instead, their energy will be funneled into the path of least resistance. With card-not-present (CNP) transactions becoming the new lowest-hanging fruit for fraudsters, U.S. online merchants should expect to see a massive spike in fraud, according to the report, which cites similar trends following the shift to EMV in Canada and the U.K. 

  "The data from Canada's EMV migration paints this picture clearly; counterfeit and lost/stolen … more

• How retailers can drive successful EMV transactions

  • EMV

  December 18, 2015

  

  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

• Best practices for EMV fallback transactions

  • EMV

  November 25, 2015

  

  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

• The payment technology of the future. Hint: it's not EMV

  • EMV

  November 18, 2015

  

  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

• What you need to know before paying your employees with direct deposit paycards

  • Payroll Cards

  October 27, 2015

  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

• Dissenting retailers challenge $5.7 billion Visa, MasterCard settlement

  • Merchant Questions

  October 27, 2015

  

  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

• What retailers need to know about the switch to EMV

  • EMV

  October 19, 2015

  

  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

• How Samsung Pay can help retailers, even if they don't know it yet

  • Mobile Wallets

  October 08, 2015

  

  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

• Earning your customers' trust through PCI compliance

  • PCI Compliance

  October 06, 2015

  

  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

• Merchant best practices to win more billing disputes

  • customer service

  October 05, 2015

  At Vantage we work with many types of businesses to set up recurring billing for services. This work includes implementing the proper payment technology for their specific needs as well as establishing merchant services on Interchange pricing plans and managing transaction qualifications with PayView data analytics. Yet our billing clients often find that one of the most valuable services Vantage provides is in helping them establish policies to prevent and win service fee billing disputes.

  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 merchants should use AVS and card verification features

  • Mobile Commerce

  September 14, 2015

  

  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

• The partner of choice: Vantage

  • Best Practices

  September 14, 2015

  

  When looking to partner with a merchant service provider, avoid settling with the ordinary and partner with the extraordinary. At Vantage, clients will benefit from our payment system consulting expertise and our state of the art credit and debit card processing services.

  Successfully navigating through the complexities of pricing, technology and regulations with card processing can be difficult, but with a professional consultant and partner to guide you through the process, your business operations and profitability will have never been better. Our experienced team has serviced every kind of merchant, therefore we will work with you to determine what payment solution is best for your industry and business needs, along with providing you with resources and tools to best … more

• Common merchant questions about EMV card-present transactions

  • EMV

  September 11, 2015

  

  As the card processing landscape is changing from mag-stripe to EMV chips with new regulations and technologies, merchants are seeking to understand the impact of these changes on their businesses. Here are two common merchant questions about EMV card-present transactions.

  Question 1: Will accepting EMV chip cards prevent data from being stolen at my business?

  EMV chip technology adds a layer of security to card-present transactions. Therefore, merchants installing EMV card readers would be limiting liability for fraudulent card transactions. This EMV technology protects against one type of credit card fraud, often called counterfeit fraud. EMV-chip cards are designed to decrease credit card counterfeiting by making them more difficult to copy. Unlike magnetic-stripe cards, which … more

• The benefits of EMV terminals for retailers

  • EMV

  September 10, 2015

  

  Credit cards are an excellent source of convenience for both consumers and retailers alike. However, due to recent, massive credit card data breaches, some individuals are growing less confident about using them. For retailers, many are concerned because of the millions of dollars that are lost each year to fraudulent transactions. Therefore, many retailers are not just switching to EMV-ready terminals to protect themselves from liability, but also to help their customers feel more secure when purchasing items at their stores.

  While making the change to avoid becoming liable for fraudulent purchases after the October liability switch is important, it isn't the only driving factor. These cards are embedded with security chips that make it more difficult to steal customers' credit … more

• What to do if your restaurant's system is compromised

  • PCI and Data Protection News

  September 10, 2015

  

  Though your restaurant may serve excellent meals and provide the best customer service in the city, if you run into trouble with credit card fraud, your valuable business will be driven quickly away. Trustwave, a global payment card security consultant, conducted a recent study where they discovered that nine out of 10 incidents in which cardholder data was compromised occurred at small merchants. Of these, 52 percent were in the food service industry. Surprisingly enough, more than twice as many of these fraud attacks occurred as a result of card-present transactions rather than online sales. 

  Some of the reasons for certain security breaches occurring include operating on an unsecured internet network or using non-compliant, point of sale (POS) software, which … more

• Staying PCI compliant

  • PCI and Data Protection News

  September 10, 2015

  

  When the Payment Card Industry Security Standards Council (PCI SSC) was formed in 2006 to better oversee the changes in PCI security standards, it was commissioned to discover ways to continually improve payment account security. Within this framework, the PCI Data Security Standard (PCI DSS) contains the requirements all companies must adhere to to securely store, transmit or process customers credit card data.

  Achieving this compliance can be challenging for many businesses.Yet, if your business does not follow basic security steps outlined in PCI DSS, weaknesses can be exploited and enable fraudulent access to cardholders' credit card data, according to PCI Compliance Guide. 

  If your business accepts credit card payments, you are … more

• Streamline escrow services with DepositGuard

  • Best Practices

  August 26, 2015

  

  Managing vacation properties can be a tedious process of collecting payments, holding security deposits in escrow and transitioning funds back to renters as soon as the stay has ended. For properties that are rented frequently on a seasonal or year-round basis, this can get particularly painstaking. That's why we we extend DepositGuard, an escrow service, as one of the payment solutions we offer at Vantage. 

  Vacation rental markets naturally have a lot of clientele turnover. If you own or manage a dozen properties that are rented weekly, you may have hundreds of clients and renters in a single summer. Without a streamlined solution, that makes hundreds of security deposits and other payments to hold and process on an individual basis. You also may need to manage rental trust … more

• Merchants should know the new EMV liability shift rules

  • EMV

  August 20, 2015

  

  One interesting new change during the switch to EMV cards for merchants and restaurants that accept tips is that the inserted chip card must stay in the terminal until the tip amount is put in and the transaction is complete. This change is made in an effort to lessen issues that occur with gift cards and prepaid cards regarding tip adjusting. However, Hotel News Now reports that there are basic rules all hotels, restaurants and retailers should be aware of that will go into effect after October 1.

  According to Visa, when a magnetic card is swiped at a traditional terminal, the merchant is not usually liable as they are now. However, now when a chip card is used at a non-chip card compliant terminal, if the purchase was counterfeit, the liability has now shifted to that of the merchant … more

• How to choose the right merchant service provider for your small business

  • Merchant Questions

  August 05, 2015

  

  One of the more vital and difficult decisions a business can make is what provider it will utilize for payment processing.

  To find the best provider for your specific business needs, consider a vendor's rates, service, terms, solutions and incentives before making any decision. In a Vantage's Merchant Poll Survey, we found that rate, meaning interchange and price structure, is the most important consideration for many businesses, followed by payment solutions and then merchant service considerations. However we always caution merchants with advice to not ignore the fine print.  Being too focused on flashy marketing can lead to a bad decision.  Always read the fine print legalese to avoid hidden fees and early termination fees.  

  "The best credit card processor is one … more

• Study shows many small businesses unprepared for EMV Chip Card acceptance

  • Interchange

  August 05, 2015

  Many small business owners are behind on EMV adoption. However a new survey by Manta, an online small business community site, shows that more than 28 percent of owners that accept credit cards do not know how the new EMV chip card payment technology affects their business or even know about the new form of payment at all, according to The Washington Post.

  This survey consisted of 1,609 small business owners and covered the lack of awareness about EMV chip cards.  The Los Angeles Times reports that 40 percent of the owners surveyed are not affected by this switch to chip card readers because they currently do not accept credit cards.  Also, card-not-present merchant types, such as ecommerce or recurring payments and those that manually key phone orders are not impacted by … more

• Missouri-based retailer accepts Apple Pay in all stores

  • Best Practices

  August 04, 2015

  

  A St. Louis, Missouri-based retailer has now opted to let its customers pay in a "simple, secure and private way" with Apple Pay, according to the company's press release. Schnucks, which has 98 locations in five different states, has evaluated its business model and clientele to determine that shoppers at all its grocery stores can leave their wallets at home and utilize their iPhone, iPad or Apple Watch to pay in an easy and secure way. Payments Leader reports that Apple Pay uses tokenization, technology that replaces the 16 digit card number with a randomly generated 16-digit number.

  "Credit card industry executives believe that tokenization is a new standard that is going to 'shift fraud patterns' in the future, successfully preventing retail hacking incidents that have … more

• Retail enterprises need flexible payment processing solutions

  • Tablet POS

  August 04, 2015

  

  The process of starting a brick and mortar retail business has changed over the last several years, particularly when it comes to point of sale systems. Today, many customers expect a variety of payment channels and entrepreneurs want systems that include inventory and reporting functions. 

  "What it comes down to is this: In a well-run business, the point of sale is more than just the place where the money comes in," writes Steven Aldrich in Entrepreneur Magazine. "With the right equipment, it becomes your strategic service center, the place that will help you grow your business and keep your customers coming back."

  With the rise of tablet technology, more devices than ever can be used as point-of-sale systems. The Verifone CLOUD POS, for example, is a cloud-based point of … more

• What kind of payment technology does your retail business need?

  • Merchant Questions

  August 04, 2015

  

  Knowing what type of card payment processor your retail business needs can be a long process of weighing various options and considering your customers' needs. However, implementing a modern payment technology module in your store may be just what it needs to boost profitability and day-to-day efficiency. 

  If your retail business wishes to operate at a fixed location, be sure that you have the most updated payment terminal. With the landscape of credit card terminals changing drastically due to new regulations and forms of payment, you need to make sure your business is ready to handle whatever comes your way. Try choosing a terminal that not only runs off of Wi-Fi, but also accepts EMV chip cards and contactless forms of payment. 

  For … more

• Pushing your restaurant into the future with a new tablet POS system

  • Tablet POS

  August 03, 2015

  

  As technology drastically changes from year to year, it may be overwhelming to keep up with the latest trends or advances. However, with an efficient cloud-based, tablet point-of-sale (POS) solution, you will not only streamline your restaurant's business practices, but also see a boost in revenue through an improved way of interacting with your customers. 

  Many smaller restaurants and businesses have been reluctant thus far to adopt cloud-based solutions due to concerns about the security of their data and information. However, Tim Harmon, a principal analyst at Forrester Research Inc., explained to The Wall Street Journal that these concerns will lessen as many owners realize their information may be safer on a vendor's servers than "on a hard drive in the back of … more

• Chargeback reason codes to be aware of with the EMV liability shift

  • Best Practices

  August 03, 2015

  

  Retail Dive reports that of the businesses surveyed by Randstad Technologies, only 58 percent stated they are actively preparing or making the EMV chip transition. Despite this resistance, the same survey reported that two-thirds of IT professionals said that chip cards are needed to enhance fraud security for businesses.

  Each year, card fraud costs the U.S. economy around $8 billion, however, many experts have stated that if there is not increased adoption of EMV technology, this number will rise to over $10 billion. One of the major efforts behind this EMV transition is to lessen the chances of card fraud, yet through businesses delaying the transition, they are instead facing an even greater liability. 

  This October deadline, is not truly a deadline, as it is … more

• How to reduce payment acceptance risks

  • PCI
  • Data Protection News

  August 03, 2015

  

  In your daily business practices, it is important to know that though card payments make paying easier for you and the consumer, they do not ensure that payment will occur. In order to protect your business against fraud, customer disputes and charge-backs, there are a few risks and suggestions for protecting against them you should keep in mind. 

  Always be wary of customers who wish to pay with numerous cards from the same bank. You can know that the cards were all issued from the same bank if they have posses the same first six digits. Though it is common for buyers to have multiple cards, they are usually issued from different banks as it would not be wise to have numerous credit cards open from a single bank. 

  Furthermore, when dealing with customer … more

• Google launches Eddystone, an open-source Bluetooth LE beacon

  • Best Practices

  July 30, 2015

  

  The world of beacons has just gotten more convenient. Ars Technica reports that Google will now be launching a new, cross platform, open-source format for Bluetooth Low Energy (BLE) beacons, called Eddystone. It was created to combat the problems in existing beacon services and unlike its predecessors, it is easily compatible with both iOS and Android devices.  

  This new beacon technology will be able to support multiple frame types, which will perform a wide array of functions. Google stated that existing beacons can be tailored to fit the Eddystone format, which will mean that different beacon vendors will be able to use the same system for varying purposes. NFC World reports that Bluetooth beacons are one-way communications, where the goal is to provide a means … more

• Government fees demand flexible payment option

  • Best Practices

  July 15, 2015

  

  Managing a city, town or county is no small task, particularly when it comes to collecting fees. Residents may accrue traffic violations, parking tickets and other debts that penalize irresponsible conduct and help maintain the efficiency of the community's revenue cycle. This is to say nothing of taxes, license fees and other sources of revenue. Having the ability to collect on these payments effectively is critical to keeping the community's finances healthy. 

  However, this is easier said than done in places where paper systems are still dominant. The long lines and red tape that many consider synonymous with government can make it challenging for administrators to manage the volume of payments they're due to receive. One of the best ways to accelerate the revenue cycle for a … more

• With LoopPay, Samsung could take early lead in mobile payments

  • Best Practices

  June 25, 2015

  

  One of the hurdles to implementation for mobile payment technology is the cost of adopting new physical systems compatible with methods like Apple Pay. Samsung stands to take what observers call an "early lead" on the marketplace due to its acquisition of LoopPay. 

  "LoopPay developed a technology called Magnetic Secure Transmission (MST) which will be integrated into new Samsung phones," reports John Heggesteun of Business Insider. "The technology will allow mobile users to pass their phones over a typical credit card reader to make a payment. In addition, Samsung Pay users will also be able to pay by presenting a barcode to be scanned at checkout."

  This means that a higher number of merchants should be able to accept Samsung Pay payments sooner than its competitors, as the … more

• Is your business ready for cloud POS?

  • Tablet POS

  June 25, 2015

  

  Whether you've just signed the lease on your first store or you are considering expanding to new locations, its worth taking the time to consider your current and future point-of-sale (POS) system needs now. In your market research, you have likely already stumbled upon how retailers and restaurants are moving away from bulky cash registers and replacing them with sleek tablet mobile payment systems. 

  Thanks to advances in mobile devices and cloud technology, cash registers have become increasingly rare, and for good reason. A smartphone or tablet can provide the same functionality, in a more streamlined manner that improves the customer experience. Customers gain the option to have receipts emailed to them instead of printed, can clearly view … more

• New York State Department of Labor to issue new paycard guidelines

  • Regulation

  June 25, 2015

  Paycards have grown in popularity as a means of compensating employees and as such, have courted the attention of regulators. The New York State Department of Labor (NYSDOL) has proposed guidelines for paycard implementation to make the process as fair to workers as possible. 

  "For several years at least, many employers with a large non-exempt workforce – particularly in the retail and hospitality industries – have moved towards pay cards as a means to reduce payroll administration costs," explains JD Supra, business advisor. "Most states either regulate pay card systems lightly (with fairly minimal disclosure and free withdrawal requirements) or not at all."

  Some of the NYSDOL-proposed regulations include:

  A description, in plain language, of all employee … more

• Samsung Pay delay reminds merchants: Easy does it

  • Interchange

  June 17, 2015

  

  As the original rollout date approached, some observers were surprised to hear that Samsung delayed the launch of Samsung Pay until later this year. The platform will be available to merchants in September and leaders at the company said the delay will allow Samsung to fine-tune some details about the service. 

  "If anything, we think that by the time we launch (in September), that we will have significant announcements associated with which banks, which networks are participating with Samsung Pay and even which merchants and which programs attached to merchants will all be a part of Samsung Pay," Will Graylin, global Co-GM of Samsung Pay, told PYMNTS. "And that's just a slight hint into what will be coming. Samsung Pay is in a great position."

  Aligning partners is one of the … more

• How complex are your payment interface needs?

  • Best Practices

  June 17, 2015

  

  One of the benefits of technological innovation is that in stores and restaurants, a point-of-sale system often performs other functions. From workforce management to ordering and timekeeping, many different services can be integrated into a single, unified system. Moreover, many companies have expanded to multiple locations, so consistent platforms across those outlets is a priority. 

  While this has streamlined digital transactions across multiple channels of a business model, it presents potential hurdles to upgrading old card reading devices. As the October EMV migration deadline nears, studies have shown that many businesses will take their time to get compatible with the new chip-and-pin system. The bigger and more complex an enterprise and the more heavily dependent it … more

• Web-based processing models help churches and other nonprofits

  • Interchange

  June 01, 2015

  

  Nonprofits face a special set of hurdles when it comes to generating donations. The traditional development model, which relies heavily on paper mailings and requests for pledges over the phone, doesn't integrate itself into the lives of patrons the way an online interface can. At Vantage, we provide service to enterprises seeking donations on their website. This produces a steady revenue stream for organizations that depend on the generosity of supporters and provides those patrons with an easy and convenient platform to give. 

  At Vantage, our solutions for similar organizations enhance an individual's ability to give, reduce the administrative time dedicated to accounting and are fully customizable to the needs of the organization. Your organization can pay a small processing … more

• Slowly transitioning to mobile payments?

  • Interchange

  May 27, 2015

  

  In the natural evolution of payment processing, mobile payments look to some like a final frontier. However, adoption will be slower than the media hype over mobile payment platforms over the next several years.

  Satisfaction with payment cards will wane over time. Most businesses have had long and fruitful experiences with traditional payment platforms. Since estimates of mobile payment usership are low, many entrepreneurs are taking a wait and see approach to adopting new mobile payments by monitoring their own customer base and inquiries which they understand are unique to them and their market.

  Yet, as these same businesses look to adopt EMV standards in face-to-face payment environments, adding the ability to accept mobile will certainly be top of mind. 

  For card-not-present … more

• How do your unbanked employees access funds?

  • Merchant Questions

  May 26, 2015

  

  Your company might have had spotty luck with its direct-deposit program. Some employees enrolled right away, while others forgot to complete all the necessary forms. Some may prefer to cash a physical paycheck while others fall into the "unbanked" category, effectively operating outside the financial system. According to the FDIC National Survey of Unbanked and Underbanked Households, nearly one-third of American households fall under that last category, making it challenging for employers and employees to exchange funds. 

  Paycards set up a clear solution to the problem: Mandating direct deposit. This allows employees with checking accounts to link their information to your payroll system, and those who are "unbanked" to enroll in a paycard program that provides them an easy way … more

• Finding the right payment model for your clientele

  • Best Practices

  May 18, 2015

  

  One of the best ways to identify payment processing models that are appropriate for your business is to learn from your customers. For leaders at supermarket chain Whole Foods, this has meant listening to their sought-after millennial demographic for direction about adopting Apple Pay and other digital payment options. 

  "We are, through the use of technology, building out and extending ourselves where our customers are whether it's through Instacart for home delivery, which we're doing more than any other grocery store in America now," Co-CEO Walter Robb said during the company's earnings call. "And we're really just getting started whether it's through affinity, which builds a personal connection to customers who will allow to customize their relationship with us [or] … more

• Finding the right payment processing provider for your enterprise

  • Best Practices

  May 14, 2015

  

  This week, Nerd Wallet conducted a cost-benefit analysis of expanding enterprises to include payment card processing systems. While few industries rely on cash-only models of doing business in 2015, some holdouts may not be sold on the benefit of accepting card payments. 

  Some of the benefits included broader reach to new customer bases, ease and convenience, reduced trips to banks to make cash deposits and streamlined accounting. Emily Starbuck Crone also noted that in competitive industries, giving customers the option to pay with their cards can help businesses gain an advantage. She cited a vendor at a farmer's market as an example: In the past, these have been largely cash-based enterprises, but some customers might not have the physical currency to make a purchase. … more

• April blog roundup: Data security, mobile payments, Congressional oversight

  • Best Practices

  May 11, 2015

  

  From mobile payments to data security, April was an active month in the payment processing space. In case you missed it, here are some of the topics we covered on the Vantage Viewpoint blog last month:

  Not all businesses require EMV terminals: Does yours?

  Key takeaway: Just because a company doesn't require a new EMV terminal doesn't mean there aren't steps it can take to protect itself and its customers.

  3 mistakes when selecting a payment processor

  Key takeaway: With a host of regulatory and compliance considerations to make as well as cost and convenience, a third party service provider can help decision makers find the ideal solution.

  Hospitality industry routinely the target of breaches

  Key takeaway: All participants in the hospitality industry can be susceptible to … more

• Forrester: Don't expect full EMV migration until 2020

  • Interchange

  May 08, 2015

  

  A new study by Forrester Research estimates that chip-and-pin signature technologies won't be "broadly adopted" in the U.S. until 2020, according to The Wall Street Journal. The findings temper misconceptions that the October EMV deadline will create sweeping and immediate change in the payment card industry. Instead, those transitions should be expected to happen incrementally over the next five years, at least. 

  Steven Norton of the Journal explains that instead of effecting a seismic shift in the way retailers process payments, the EMV deadline will do more to influence liability in the event of security compromises. He also cautions observers against the notion that chip-and-pin authentication will eliminate vulnerabilities in payment processing. 

  "But the switch to EMV … more

• 93 percent of retailers say customers want more payment options

  • Best Practices

  May 05, 2015

  

  In 2015, convenience is a primary driver of innovation. In the payment processing space, providing customers with options for purchasing goods or services can improve their experience and open your business up to new customers. According to a survey by market research firm Ovum called "2015 Global Payments Insight," a customer-focused approach to omnichannel payment processing is catching on among retailers. 

  "While half of the retailers recognized in their responses that the customer is king, and the key driver to increase their payments investment, many are still hesitant to invest in technologies they are wary of," explains PYMNTS. "It's worth noting that 93 percent of retailers surveyed said they believe consumers want access to a broad selection of payments tools — … more

• EMV shift could change hackers' focus to CNP transactions

  • Interchange

  May 05, 2015

  

  The 2015 EMV deadline arrives in October and many experts have speculated about how the widespread implementation will change the nature of cyberattacks. On this blog, we've discussed predictions that hackers will use all of their old tricks up until the EMV deadline in order to capitalize on the closing window of opportunity. However, Ian Murphy of RetailDive suggests the adoption of EMV systems will cause hackers to focus on card-not-present (CNP) transactions. 

  "CNP fraud is expected to more than double from a total of $2.9 billion in 2014 to $6.4 billion in 2018," explains Murphy. "And as an EMV transition proceeds in the United States, fraud will shift from card-present transactions to other types of card payments that so far lack stringent protocols for authentication, says … more

• Penetration tests should be sophisticated and controlled

  • Best Practices

  May 01, 2015

  

  Earlier this year, we discussed the importance of conducting penetration tests. Recently, PYMNTS spoke to Graham Steel, CEO of Cryptosense, a company that creates software for testing vulnerabilities in secure systems. According to the site, Cryptosense focuses on back-end security gaps in PINs, security keys and other forms of encoded information. 

  "What we usually find are just little mistakes, little configuration errors or small things that are being done wrong," said Steel. "The things we find wrong are often easy and simple but they are hidden among all the other functions that are found in payments back office application. They are shallow, but they are hard to find because of all the other layers."

  One of the best ways to ensure that your system … more

• Most merchants say high-profile breaches have served as wake-up call

  • Best Practices

  April 30, 2015

  

  After a year of high profile breaches, some might assume that merchants are on high alert about payment card security. And while a majority say that the spate of compromises has caused them to think seriously about the issue, about 30 percent say the media attention has had little effect on their approach to data protection. 

  On this blog, we just discussed the findings of "Data Security in the Evolving Payments Ecosystem," a report by Experian and the Ponemon Institute. One of the study's areas of focus was on the response from merchants in relation to breaches at companies like Target, Home Depot and Michaels.

  "Sixty-nine percent said highly publicized data breaches did increase their awareness about securing their payment processes," summarizes Roy Urrico of Payment Union … more

• Study shows merchants value convenience over security

  • Best Practices

  April 30, 2015

  

  It seems that each week there's a new payment method on the market. Whether it's the launch of a new mobile payment platform or the looming October deadline for EMV migration, merchants may feel a sense of urgency to implement systems that give their customers a variety of options for purchases. However, a new study by Dublin, Ireland-based Experian and the Michigan-based Ponemon Institute found that retailers may need to realign their priorities when it comes to new payment platforms. 

  "While risk and security concerns loom, large and new technologies are being deployed because they offer vastly improved customer convenience. Throughout our study, we found a large percentage of companies are likely to keep moving forward with deployment of new technologies … more

• Are retail storefronts primed for a comeback?

  • Merchant Questions

  April 29, 2015

  

  Much has been written about the threat that ecommerce sites pose to brick-and-mortar retail operations. However, some experts say the tide may be shifting in favor of traditional storefront retailers. 

  This led Karen Webster of PYMNTS to ask the question: "Is physical retail a threat to Amazon?"

  "Amazon is largely correct that consumers are driven by convenience, selection and price. But in a connected device world, those words now mean different things," she writes in an op-ed. "And the combination of smart devices and technology is helping retailers large and small and on and offline respond to how consumers now interpret what it means to deliver 'convenience.'"

  This is to say that physical retail spaces have their own advantages when it comes to delivering on value … more

• Target to pay $19 million settlement following breach

  • Best Practices

  April 29, 2015

  

  The last year has been rocky for payment card security. With a spate of high-profile breaches in the retail industry, corporations face costly settlements to rectify the damage caused by compromised payment card data. This month, it was announced that Target will pay as much as $19 million to MasterCard and banks to address losses sustained by customers. 

  "Under the agreement, Target will make available up to $19 million in alternative recovery offers to eligible banks and credit unions across the globe," MasterCard said in a statement. "These funds will settle their claims for operational costs and fraud-related losses on MasterCard-branded cards believed by MasterCard to have been affected by the data breach."

  While the money will have a restorative effect for individuals and … more

• Banking industry leaders endorse new cybersecurity bill

  • PCI
  • Data Protection News

  April 29, 2015

  

  A new congressional bill titled "Data Security And Breach Notification Act of 2015" aims to increase intelligence and awareness about threats against consumer data. According to PYMNTS, the legislation is designed to enhance standards for data protection and alert entities in the private sector about new vulnerabilities as they arise.

  Sponsored with bipartisan support, the bill was introduced to the Senate this month by Sen. Tom Carper (D-Delaware), and Sen. Roy Blunt, (R-Missouri) and moved successfully through the House Energy and Commerce Committee under the guidance of Republican Rep. Marsha Blackburn and Democrat Peter Welch.

  One of the requirements of the bill is that businesses must inform customers within 30 days of a breach that their personal information … more

• Discover partners with Apple Pay

  • Tablet POS

  April 29, 2015

  In order for a new payment platform to take off, it requires the support of merchants and credit card companies. If neither gets behind the new technology, it will have little hope of success. That's why the news this week that Discover will partner with Apple Pay is so important: According to the Associated Press, now all major credit card providers are on board with Apple's mobile payment system. 

  The AP report suggests that the decision came after "months of complaints" from customers that Discover hadn't yet addressed Apple Pay compatibility. 

  "As the mobile payments landscape matures, Discover remains committed to giving cardmembers secure options for using their cards and mobile devices," Diane Offereins, Discover's president of payment services, said in a statement. … more

• 85 percent of Apple users haven't tried Apple Pay

  • Tablet POS

  April 23, 2015

  

  For both consumers and businesses, the advent of payment systems like Apple Pay represent a new avenue of revenue and payment processing options. And while some have been quick to trumpet the turning tide in favor of mobile payment processing, adoption rates lag behind the hype. 

  According to PYMNTS.com, 85 percent of Apple users have yet to try the service, indicating an attachment to old payment methods. A November report by the site and InfoScout found that in November 2014, total usership among iPhone 6 owners was a mere 5 percent, which grew to 6 percent by March of this year. 

  "Ask most people what the state of mobile payments is today, and they'll tell you it's just kicking off," explains Alix Murphy of TechCrunch. "With Facebook announcing the option to send … more

• Hospitality industry routinely the target of breaches

  • PCI and Data Protection News

  April 23, 2015

  

  The hotel management industry processes payments on many different fronts. From the front desk or concierge to the lobby bar, guests at hotels face many different locations and platforms to purchase goods, services and amenities. A Wells Fargo report called "Understanding the impact of a data breach on your hotel or resort" provides a log of high-profile and damaging attacks perpetrated by members of the public and hospitality employees to compromise customer payment data. 

  Those entities range from high-end luxury resorts to travel agencies and motel chains, indicating that hackers don't discriminate when it comes to stealing data. Moreover, it shows all participants in the hospitality industry can be susceptible to attacks if their payment processing systems aren' … more

• 3 mistakes when selecting a payment processor

  • Best Practices

  April 22, 2015

  

  Selecting a payment processing system can be a daunting task for business owners, especially when updating an old system. With a host of regulatory and compliance considerations to make as well as cost and convenience, a third party service provider can help decision makers find the ideal solution.

  On the Small Business Trends blog, Shawn Hessinger suggested some of these common mistakes businesses make when selecting a payment processing platform:

  Not getting enough fraud protection. 

  Over the last two years, a spate of high-profile breaches has made payment card data security chief among business leader concerns. Hessinger suggests selecting a provider that will work with your company to help alleviate the burden of fraud, from an immediate response to preventative … more

• Not all businesses require EMV terminals: Does yours?

  • Best Practices

  April 07, 2015

  

  At Vantage, we routinely field questions about payment processing technology. Clients come to us every day with their queries: sometimes specific ones about their business model while others become more frequently asked. With the growing buzz surrounding EMV chip card rollout, driven in part by a frenzy to sell terminal hardware, here is one of our top EMV FAQs to date:

  Question: "My business processes all credit card payments online and never sees a physical credit card because we receive this information over the phone.  Is this EMV-ready terminal something that we will need to acquire?" Answer: If payments online and over the phone are the only transactions your company manages, then no, you won't need an EMV terminal. EMV is being implemented in an attempt to prevent … more

• March blog roundup: PCI compliance strategies

  • PCI and Data Protection News

  April 05, 2015

  

  Last month, we delved into PCI compliance topics on the Vantage Viewpoint blog. What are the hurdles to staying compliant, and what are the risks to overlooking payment card security? In case you missed it, here are some of our favorite posts from March about PCI compliance. 

  PCI 3.0 standards expect more constant vigilance from vendors

  Key takeaway: Continuous review and monitoring is written into the new PCI 3.0 standards to prevent companies from overlooking their responsibility to evaluate practices on an ongoing basis. Instead of cramming for a PCI audit, businesses are expected to integrate assessment measures into their regular operations.

  Strong third party relationships can boost efficiency of response plans

  Key takeaway: One of the most important facets of … more

• Verizon: 80 percent of merchants fail interim PCI assessments

  • Best Practices

  April 01, 2015

  

  On this blog, we discussed previews of the 2015 Verizon PCI Compliance Report from January, which suggested that fewer than one-third of merchants remained compliant between audits. According to the full report released this month, that figure could be as low as one-quarter. The firm states that 80 percent of all retailers fail interim PCI audits, leaving a sizeable majority of merchants vulnerable to cyber attacks through most of the year. 

  "Today's cybersecurity landscape is constantly changing," said Rodolphe Simonetti, managing director, professional services for Verizon Enterprise Solutions. "Compliance at a point in time isn't sufficient to protect data. Putting the focus on making compliance sustainable is key. It must be a part of day-to-day activities within an … more

• For mobile payment platforms, merchants shouldn't feel rushed

  • Tablet POS

  April 01, 2015

  

  With countless media stories about the rise of mobile payment technologies like Apple Pay, Samsung Pay and others, merchants may feel pressure to get compatible to offer customers another option for point-of-sale transactions. However, Natalie Burg of Forbes says businesses on the fence about whether or not to adopt a new platform shouldn't feel rushed to make the decision. 

  "Mobile technology offers many opportunities to grow consumer and merchant payments alike and for less friction in the experience for both," says Troy Leach, CTO of PCI Security Standards Council. "However, with that comes many new challenges not associated with traditional payments that all parties have come to trust."

  Granted, those "traditional payments" come with challenges of their own, as evidenced by … more

• Experts predict active year of breaches ahead of EMV deadline

  • PCI and Data Protection News

  March 27, 2015

  

  Because payment cards with EMV security chips will proliferate within the market this year, experts expect that 2015 will be an active year for breaches. This is because criminals with tried-and-true methods of compromising existing POS systems will attempt to exploit the final window of time when those strategies are effective. 

  "It absolutely will be the worst year of fraud because criminals know we are putting bars on the windows with EMV," said Bob Letgers of Fidelity National Information Solutions. "They will exploit that channel as much as they can."

  Letgers made his remarks during a panel at the Consumer Bankers Association conference in Orlando, according to the Orlando Sentinel. As the October deadline draws closer, hackers have at least six months left to … more

• Verizon study shows PCI compliance is improving

  • PCI and Data Protection News

  March 24, 2015

  

  As payment card standards evolve, surveys have been conducted to gauge the level of seriousness merchants pay to remaining compliant with PCI requirements. On this blog, we discussed the troubling statistic that fewer than one-third of businesses remain compliant between PCI audits. A new study by Verizon posts a more encouraging outlook on the state of compliance, however, as it found that the total number of compliant organizations rose by 20 percent last year. 

  The shift may be due to two primary reasons. First, with new standards in place this year, PCI compliance is factoring more prominently into the conversation about payment card security. On the other hand, a spate of high-profile breaches has positioned security practices as an important risk reduction measure. The … more

• Strong third party relationships can boost efficiency of response plans

  • PCI Compliance

  March 09, 2015

  

  One of the most important facets of payment card security is enacting an emergency response plan. Prevention efforts can only go so far to protect merchants from the fallout of a breach, so preparing for the worst is an integral part of data protection strategy. 

  On this blog, we recently discussed how continuous attention to compliance measures like auditing helps companies identify breaches as soon as a compromise occurs. But then what?

  "Once auditing is in place, you should be able to detect and respond to any incidents that fall outside of normal business rules," explains Steve Dickson, vice president and general manager of Windows Management, Dell Software in CIO Magazine. "Have a solution that can simultaneously audit and alert. You also need to remediate any issues by … more

• PCI 3.0 standards expect more constant vigilance from vendors

  • PCI Compliance

  March 06, 2015

  

  One of the biggest hurdles to payment card processing security is for companies to remain compliant between audits. As we've reported on this blog, many don't. However, continuous review and monitoring is written into the new PCI 3.0 standards to prevent companies from overlooking their responsibility to evaluate practices on an ongoing basis. Instead of cramming for a PCI audit, businesses are expected to integrate assessment measures into their regular operations. 

  Experts say that those expectations may be the most challenging difference between old PCI standards and the latest guidelines. 

  "PCI DSS 3.0 inherently implies that organizations adopt continuous compliance and monitoring to reduce the risk of a breach...," writes Torsten George of Info Security Magazine. "This … more

• Robust penetration tests are critical to data security

  • PCI Compliance

  February 18, 2015

  

  One of the most effective ways a company can determine the security of a card processing platform is to undergo a penetration test. These are required for PCI compliance, and merchants conduct them annually to identify vulnerabilities to preempt malicious hacking attempts. In a standard penetration test, administrators make their best effort to compromise a network in the manner of cybercriminals, thereby revealing which areas might be sensitive to a breach. 

  Mark Burnette of Net Security says penetration tests allow merchants to use the tools of hackers to help fortify existing systems. Rather than waiting for criminals to discover vulnerabilities in your payment card processing system, penetrating them yourself first can allow companies to double down on security. 

  "In the … more

• What merchants need to know about the new credit card fraud liability rules

  • EMV

  February 11, 2015

  

  New rules for retailer credit card fraud are slated to go into effect on October 1, representing the first major sea change in credit fraud liability in years. But what do merchants need to know to make sure that they're ready for this change?

  According to the financial news website The Street, come this October, U.S. retailers looking to better manage risk after a new shift in fraud liability will need terminals compliant with Europay-MasterCard-Visa (EMV) "smart cards," which are designed to better curb instances of counterfeiting. This shift in determining where liability lies if fraud occurs is just one step in a much larger process of pushing for a more widespread of EMV throughout the U.S.

  While card issuers — predominantly banks — used to … more

• Marriott franchise hit by another string of breaches

  • Credit Card Terminals

  February 10, 2015

  

  Many of the Marriott Hotel locations whose credit processing systems were compromised in 2013 experienced a similar breach in the second half of last year. After several banks and credit institutions investigated incidents of fraud on credit and debit accounts, investigative reporter Brian Krebs followed the payments to the series of hotels, 14 in total. 

  The locations in question are run by franchise operator White Lodging Services, and the breach was traced to hacked point of sale systems. The compromises mostly occurred at restaurants and bars at the hotels, between September 2014 and January 2015, according to Jeff Goldman at eSecurity Planet. 

  "We recently were made aware of the possibility of unusual credit card transactions at a number of hotels operated by one of our … more

• New "Ghost" vulnerability prompts warning from Homeland Security Department

  • PCI Compliance

  February 09, 2015

  

  A new vulnerability called "Ghost" has emerged as a threat to computer systems, cautions PCI Security Standards. The United States Department of Homeland Security has issued a warning to users of Linux GNU C Library operating versions prior to 2.18. By remotely executing a code, hackers can take control of a system to install malware, manipulate files and carry out other illegal activities with stolen credentials, reports Mobile Payments Today. 

  The warning was released through the United States Computer Emergency Readiness Team, and PCI Security Standards Council made suggestions for companies to protect their secure payment card data in light of the new threat:

  First, companies should work with IT departments to find systems, servers and pieces of hardware that run a targeted … more

• Less than one-third of retailers remain compliant between audits

  • PCI Compliance

  February 09, 2015

  

  Businesses that use credit card merchant services are held to PCI compliance standards, but many of them only do the legwork in advance of an audit. With the spate of headline-grabbing breaches, it's easy to see why this is bad business practice. According to Verizon's 2015 PCI Report, only 28.6 percent of retailers remain compliant with PCI standards in the periods between audits. This means that some companies are keeping up with standards imposed on credit card security for only a brief window of time, leaving them open to vulnerabilities for the remainder of the year. 

  "We see compliance going down day by day, month by month, after the assessment," said Rodolphe Simonetti, managing director for Verizon's compliance consulting. "Compliance is supposed to be … more

• Supreme Court denies merchants' petition for lower debit card processing fees

  • Interchange Litigation

  January 22, 2015

  

  In 2011, the Federal Reserve was accused of ignoring the Durbin Amendment to the 2010 Dodd-Frank Act when it established a debit card swiping fee of 21 cents per transaction, a cap that they claimed was allowed by the amendment's ambiguous language. On the other side of that debate, merchants argued that that cap was far beyond what was originally intended by Dodd-Frank, with a U.S. district court ruling in their favor in the summer of 2013. But as we shared with you last year, that ruling was then overturned by an appellate court, stating the legislation, albeit "poorly drafted," still entitled the Fed to the merchant interchange fees it had set for debit card swipes

  That setback prompted merchants to file a petition with the U.S. Supreme Court, arguing the high court to take up its … more

• Global mobile payments to surpass $130 billion by 2020

  • Mobile Commerce

  January 22, 2015

  

  Technologies such as Apple Pay are driving increased adoption of NFC-based mobile payments, and the industry is expected to grow significantly over the course of the next few years. According to a report from Strategy Analytics, the NFC mobile payment market will exceed $130 billion by 2020. 

  This is encouraging news for an industry that took longer than initially expected to get off the ground. For years, there was talk that Apple's iPhone would contain the NFC technology needed to facilitate mobile payments at retail stores and restaurants, but it was only this year when the iPhone 6 and iPhone 6 Plus came out that the technology was finally included in the popular line of smartphones. Now that NFC is becoming more mainstream, it's expected to only grow exponentially over … more

• Google sues MasterCard, Visa for allegedly high merchant interchange fees

  • Interchange Litigation

  January 14, 2015

  

  Google has slammed MasterCard and Visa with a new federal lawsuit, accusing the credit card companies of excessively high and "supracompetitive" merchant interchange fees.

  The complaint alleges that from January 1, 2004, to November 28, 2012, Google was forced to pay a merchant interchange rate considerably higher than "what a competitive market would allow" whenever it accepted payments from MasterCard or Visa cardholders. The tech giant accuses the credit card providers of violating Section 1 of the Sherman Act with its merchant service rates.

  A class action lawsuit had previously been filed against both MasterCard and Visa over debit and credit card merchant fees. That case ended with a settlement of $7.25 billion that was then divided up among the plaintiffs who were forced to pay … more

• January marks the start of PCI version 3.0

  • PCI Compliance

  January 09, 2015

  

  Companies that rely on credit card merchant services must be compliant with a new set of Payment Card Industry Data Security Standards in 2015. Effective this month, version 3.0 will replace the previous set of standards, in an effort to enhance security and protect personal data for consumers. 

  PCI updates its standards every three years, as advances in technology and new vulnerabilities emerge, to make the industry more airtight to breaches. Experts say that while becoming compliant with new PCI directives might cause headaches in the short term, it will benefit companies and their customers in the long run. 

  "It's also a response to events that have taken place since the last DSS version, like the numerous security breaches and mass credit card data thefts that … more

• How will merchants balance acceptance and costs in 2015?

  • Mobile Commerce

  January 04, 2015

  

  As merchants look ahead to a new year, now is the time to project how their role will evolve in 2015 and beyond. Technology will continue to advance well into the new year, which will provide merchants with opportunities to process payments in new and innovative ways. Of course, not every merchant is on board with new payment methods that utilize different tools like mobile phones and tablets, but increased adoption is going to be a major story in 2015. In fact, one publication has gone as far as saying this will be the most pressing issue in the merchant community next year, and it may result in other needs taking a back seat.

  There is nothing more frustrating as a consumer than getting to the front of the checkout line only to realize they do not accept your preferred method of … more

by Ty Hardison

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