If you accept credit cards at your place of business, you’ve likely dealt with chargebacks at one time or another.
For those that haven’t, chargebacks occur when a cardholder contacts their credit card-issuing bank and asks for a refund on a transaction for a purchase or service made on their card.
A chargeback can be a HUGE setback to say the very least. Not only is it a big pain in the rear to handle that equals wasted time and resources to resolve … you, the merchant, can potentially lose out on the money you’re owed AND face an additional chargeback fee from the processor.
That said, it makes good business sense to employ proactive practices in your business to prevent a customer from charging back a payment.
We get asked this question all the time, so I figured I’d answer it here on our blog.
While it’s technically true that no one is going to force you to upgrade to an EMV chip card terminal, it is not a gamble that is advisable, and it all has to do with how risk is viewed in a post-EMV world.
Hard to believe we’ll be ringing in 2016 at the end of this month. That means now is the perfect time to reflect back on this year.
In May, we launched the How Payments Are Done blog with a specific mission in mind: to keep our business partners and merchant clients updated and armed with payment strategies that work.
Throughout the past seven months, we’ve covered a broad range of topics from EMV and tokenization, to card not present (CNP) fraud and mobile commerce.
Now let’s see which of those posts got the most attention — and might just warrant printing out and keeping at your desk to refer to again and again.
Every industry has its share of specific terms, acronyms and abbreviations. There’s certainly no shortage of them in the world of payments.
One that you’ve likely come across on a regular basis — and one of extreme importance to your business — is PCI-DSS.
PCI-DSS stands for Payment Card Industry Data Security Standard. It’s a set of requirements created to keep customer payment card data secure. All companies that process, store or transmit credit card information are required to comply with PCI-DSS.
In my last post, I spoke about card present fraud and EMV.
It’s important to understand the two types of fraud, how they occur, and what you can do to put a stop to it. I suggest you read this article as well: What Is Card Present Fraud?
The second type of fraud that I’ll cover here is card not present fraud. Card not present fraud is online, hacking-type scenarios where someone goes onto an ecommerce site, gets a hold of your data, and attempts to perpetrate fraud using your number.
“What does ‘card present fraud’ mean? … How can it be prevented?”
I get asked these questions all the time and you likely have questions around it yourself. I’m hoping to clarify card present fraud for you — and shed light on how to put a stop to it.
Stay tuned for my next post. I’ll cover card NOT present fraud and what do to about it.
I only process about five transactions a month with a card presented by a member we know. Do I really need to worry about fraud and switch to an EMV terminal?
Rick Ellis’ Answer to “Do I Need to Worry about EMV If I Process Very Few Credit Card Transactions?”:
This is a common misconception. Merchants with low transaction amounts think they’re less at risk of fraud, but in fact, are MORE at risk.
Understandably, one of the biggest concerns about the EMV changes that take effect here in the U.S. on October 1st is the impact of the merchant liability shift.
Right now, as it has been for the longest time, card issuers are the ones who bear the brunt of most credit card fraud.
Starting October 1st, this will change. Under certain conditions, card issuers are no longer going to cover a merchant’s risk associated with transactions that result in fraud.
So what are those conditions? We’ve developed a simple chart to give you a concrete understanding of the different possible scenarios and how they will affect merchants that accept credit cards.
It won’t be just any old Thursday. Come October 1, 2015, the U.S. will flip the switch to a three letter acronym we all should get used to hearing: EMV.
Named after its original developers, Europay, MasterCard and VISA, EMV is a set of specifications for chip cards and the devices — such as point of sale payment terminals — that are used to accept chip card payments.
Why the change? EMV chip technology is proven to significantly reduce card fraud resulting from counterfeit, lost and stolen cards.
If you haven’t already, you’ll soon see:
- Consumers whip out new chip cards to make in-store purchases.
- Merchants with new point of sale terminals that accept chip cards.
- Chip cards being inserted into terminals instead of being swiped.
You’ll also see the emergence of contactless payment methods — like Apple Pay — where customers make purchases by holding their contactless card or mobile phone in front of a reader — rather than inserting a card.
With all these changes comes, of course, plenty of questions. Fortunately, there is no shortage of guidance.
Here are four resources we strongly recommend checking out in the next few weeks to get up to speed on EMV:
In today’s world, merchants are expected to keep cardholder data secure. Companies like Target and Lowe’s don’t just find themselves with a bunch of bad PR, they also have to deal with costly fines and litigation. Unfortunately, many merchants don’t truly understand how vulnerable electronic payments are, and may think they are secure, when in fact they are not.
The Payment Card Industry Data Security Standard (PCI-DSS) is the set of payment card industry rules for data security. As PCI standards become more and more complicated, merchants are investing in a variety of solutions. However, some of those solutions don’t provide the level of security required to pass an audit.