A big concern these days for anyone with a credit card, merchants and customers alike, is fraud. We no longer explicitly trust big name companies to have completely secure measures; however, it is assumed they have more than adequate measures. Apple’s release of Apple Pay seemed well-tested, but the unusually high fraud rates that have recently come to light tell a different story.

When Apple Pay first came out, numerous banks and credit card companies were excited and eager to be in Apple’s list of chosen companies. Apple’s strategy to stay simple and clear-cut left the company neglecting to include many customer details upon signing up for the mobile program. The verification of phone numbers and addresses were not something Apple Pay required, and this is shocking considering the amount of fraud that could occur without these. Online companies, such as ourselves, know that requiring the customer’s address can catch fraud before it occurs due to time sensitivity and faulty addresses. Faulty addresses are caught in the payment process, and it normally takes a few days it takes to ship packages, so there is more time to catch thieves. However, in the case of Apple Pay, they only required basic credit card information from a user. According to a New York Times article, an industry consultant named Cherian Abraham put Apple Pay’s fraud rate at an alarming 6 percent. In comparison, a normal credit card fraud rate is at 10 cents for every $100 spent. That’s 60 times the average credit card fraud rate.

In addition, the New York Times article stated that banks are also to blame because of their silence and lack of further precautionary measures and fraud defenses. Many banks and establishments trusted that Apple Pay would be aware of any fraud issues, and they also wanted to remain in good graces with Apple. Efforts to direct flagged credit cards were flawed because many banks directed callers to customer support centers rather than fraud prevention centers. The system to register credit cards has flaws, and neither the banks nor Apple are claiming failure.

Smart thieves can take advantage of this system by using stolen credit card numbers into iPhones and then using Apple Pay with those phones. Innovation is one thing, but when it becomes a hazard to security and an open invitation to fraud, Apple may need to reevaluate its security measures and demand stricter bank standards. They can begin to better prepare banks for Apple Pay and all the troubleshooting that accompanies a new kind of credit card.

According to PointofSale.com, since Apple Pay’s introduction, iPhone 6 customers have the option to use their mobile device to pay for goods and services at more than 220,000 Apple Pay partner merchants, which include retailers, financial institutions, restaurants, amusement parks and even vending machines. This staggering number of places leaves even more room for mistakes to occur, and all any customer needs is a smart phone and a bank account-real or fake. Gartner Research predicts that mobile payments will only continue to grow at a 35 percent growth rate until 2017, and this will bring 450 million global users. Those large numbers are going to bring Apple Pay’s security threats to an even brighter light, and the company should make sure they have lasting global fraud strategies in place. The technology has gotten easier to implement, to use, and to hack.

How can merchants and customers who want to be innovative and use Apple Pay keep their credit cards safe from fraud? A website called MainStreet.com, listed a few options to help protect customers using Apple Pay. First, research good banks before you choose one, and find a bank that has progressed with EMV chips and other new technologies. Look into their security measures and make sure they have the proper steps needed to deal with any fraud. Another two strategies are to set up transaction alerts and sign up for card and transaction monitoring services. These will help you notice any abnormalities that occur on your card or any large purchases that you don’t recognize. You should also stay on top of new cards, and get your card enrolled in Apple Pay. Any additional enrolled cards on Apple Pay will then trigger red flags for fraud. Lastly, it is important to pay attention to your credit card statements and assume you are not exempt from having your card stolen. With recent credit card breeches, the best way to protect yourself is by being proactive and careful.

This beautiful, family owned and operated, boutique resort is located on Maine’s beach front in York Harbor. We talked with Peter Foster, who is part of the family ownership and works daily at the Stage Neck Inn to learn more about their inn and how they use Beagle’s printers.

When was your business founded, and how many employees do you have?

“The Stage Neck Inn is the fourth hotel that has sat on this peninsula of land. At least three generations of old hotels have sat here; two hotels burned down and one was torn down. The Grand Old Hotels of the past that sat on the property had up to 300 rooms. Back then air conditioning did not exist, so in the heat of the summers the wealthy people from the cities used to come up here to get away and enjoy the refreshing ocean breezes. These elite vacationers used to bring their ‘help’ with them too. The Stage Neck Inn today is situated on the peninsula where the old servant’s quarters were, the closest point to the ocean. The Stage Neck Inn was built in early 1970’s, and in 1982 the current ownership began running it. There are 65 full time employees and around 130 full-time employees during peak season.”

Is there a fun or interesting story about your business or your town?

“This part of the country [Maine] is very old, so a lot of weird things used to happen around here. Historically, the wealthier people lived inland. The peninsula our Inn is built on is called Gallows Point, in the very old days they used to bring criminals to hang them here. In later years, the peninsula became an area where drying stages were built to dry fish caught around the coast of York. The ‘neck’ from Stage Neck Inn could be from the neck of land that juts out into the harbor which our Inn sits on. But it could also be in reference to the hangings, you can take it either way.”

How do you use the product (s) you have purchased from us?

“We run your Micros POS printers, and we mostly buy refurbished printers. Epson printers that sit behind in the kitchen have no service agreements, so we buy refurbished printers that will work well when others get melted by a hot pan or something. Beagle’s turnaround is great, we like that we can overnight shipping service! We’ve used that a few times and it’s worked well.”

Check out Stage Neck Inn:  http://www.stageneck.com

An innovative kind of receipt paper was recently developed by a Wisconsin-based company called Appvion Inc. This company calls the paper Alpha Free paper, and it uses Vitamin C as an image developer instead of phenols and urea-based compounds like BPA. This new approach to thermal receipt paper will be safer for food, the cashiers and customers who come in contact with receipts, and the environment. It is a great new natural alternative! 

Cashiers who have a lot of exposure to chemicals in receipt paper may be interested in this new paper, especially pregnant women and environmentally conscientious retailers. It would be an ideal paper for restaurants, convenience stores, and co-ops looking to provide a healthy and green alternative to other thermal papers. 

This paper could be preferred to papers such as BPA that can disrupt hormones, and BPS may have some of the similar effects. However, BPS paper is yet to be tested for these. The new Vitamin C paper is encouraging for retailers and consumers who are looking at the long-term benefits of having a paper with no chance of harming cashiers and customers. It could be used on everything from luggage tags at airports to receipts at a farmers market. Customers who look for more natural components in their products will be excited to hear about a product such as Vitamin C paper. Stores that pride themselves on their green image can also capitalize on the benefits of the paper.

The paper is only one sided, due to the chemicals removed from it. However, the white backside is great for placing promotions and coupons. Vitamin C paper also has great imaging and the colors come out strong and clear. It also has a nice yellow hue from the Vitamin C, and this bright color is a clue to customers that their paper is safe and free of chemicals. Thermal paper that is recycled would often contain chemicals, but Vitamin C paper would not. When the paper is recycled, it has no chemicals to pollute landfills or get into groundwater.

At Beagle Hardware, we are now offering Vitamin C paper! You can purchase 50 rolls for the low price of $98. It’s compatible with both Epson TM-T88 printers and Star TSP 100 printers. You can find more information and purchase the paper here: http://www.beaglehardware.com/paperthermal.html