Tagged in: EMV

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Versatility – The Key Trait of Tomorrow’s Successful POS System

As technology becomes more advanced, customers continue to demand more from their shopping experiences, both online and offline.

To meet the needs of both retailers and shoppers, POS systems are becoming more and more versatile in the services they offer.

When debit and credit card readers were first introduced, they began to transform the way we make purchases. Current POS systems encompass a wide range of business functions, such as cashless transactions to data collection.

Today, keeping the customer happy in a competitive marketplace means offering a superior “customer experience.”

In other words, it is the retailer’s job to make the entire shopping journey, from product selection to checkout, as pleasant and user-friendly as possible.

How Versatile POS Systems Help the Retailer and the Customer

Business owners are certainly aware that a POS system can automate or semi-automate many business tasks, from inventory to order entry to data collection.

However, as technology and new payment methods continue to advance, versatile POS systems will become even more necessary.

Here are just a few of the diverse features that retailers should pay attention to when looking at the evolving POS market:

Cashless and Digital Wallet Capabilities

Though digital wallets – the ability to pay directly from your smartphone – have their fair share of skeptics, the number of digital payment options continues to grow. And the number of customers using these digital wallets also continues to grow.

Android Pay, Google Wallet, and Apple Pay are among the biggest names. But many other companies are jumping onto the bandwagon, including Chase Bank, Amazon, Alibaba, Samsung, and others.

Delays in adoption are due to security concerns, as well as slow adoption rates by both customers and retailers.

However, the sheer number of digital wallets being implemented suggests that this may become more than just a fad.

EMV Compliance

Another major trend we see in the payment processing world is the transition to EMV credit card readers.

On October 1st, 2016, banks shifted liability for fraud cases over to businesses, in cases where those businesses had not adopted chip-enabled card readers.

Though some argue that this is no reason to panic – after all, no one will be arrested if they aren’t EMV compliant – it’s clear that banks and industry leaders are aggressively pushing for EMV adoption.

And, as they do, more and more customers are being issued these cards, and security concerns may drive some people to shop where EMV cards are accepted.

Mobile POS Integrations

The biggest benefit to mPOS solutions is their portability.

They can be used on the floor, in the field, or wherever your staff happen to be. These systems often include a host of other functions, from cloud updates to design flexibility to data collection.

POS vendors are also continuing to introduce new integrations, such as mPOS devices that are able to accept both EMV cards and digital wallets.

Though mPOS devices are still in the minority, they are currently the most versatile devices, and may prove to be the standard at some point in the future.

Tomorrow’s POS Integrations

Although the POS and payment processing industries have encountered obstacles during their growth, expect technology to offer more integrations in the coming years.

Expect to see POS systems that offer even more advanced technologies and functions, such as:

  • Age Verification
  • QR / Bar Code Scanning
  • Acceptance for All Major Digital Wallets
  • Contactless Cards

Ultimately, the POS systems of tomorrow will be much more versatile than today’s most current models, making life easier for both retailers and customers.

The Bottom Line

If you want to keep up with the demands of your busy customers – and stay competitive – it pays to keep an eye on the busy world of payment processing.

The checkout line has a significant impact on customers’ wait times, their retail experience, and their perception of a brand or company.

Though all new technologies have an adoption curve, the history of credit cards shows how new technologies can eventually become the norm. In a few years’ time, all retailers may be using versatile POS systems that do much more than read magnetic stripes.

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Protecting Your Business (And Your Customers) from a POS Security Breach

Day after day, POS software companies are developing an increasing number of options to better protect and serve customers.

Though hackers are always innovating, there are steps you can take to protect your data and your customers.

By utilizing the tips mentioned in this article, you can work against these hackers and better serve your clientele.

1. Utilize End-to-End Encryption

Encryption is one of the most powerful security tools you can have at your disposal. Recently, Hewlett Packard Enterprise Security teamed up with Ingenico to create a product that will protect customer data from the most common cyber attacks.

So how does end-to-end encryption help keep your customers’ data safe?

Most malware is designed to steal information the moment a customer swipes their card. By retrieving credit card numbers from a POS machine’s RAM memory, the hacker can gain access to that unencrypted information.

If a company chooses to use end-to-end encryption, however, the credit card information will be protected from malware the moment it is swiped.

In other words, this process “locks” the customer’s payment info from beginning to end.

Since hackers are continuously working to better their own techniques, end-to-end encryption is a method of protection that prevents attacks and eliminates the vast majority of system vulnerabilities.

In an effort to offer even more security, businesses can also employ techniques such as “tokenization,” which work to store card information under digital alternatives within the company’s system.

2. Increase Monitoring

All too often, the only security put into place within a business’ system is an easily guessable password. Hackers have developed an array of tools to crack passwords, which can then be used to gain access to financial information.

By employing additional security precautions you can help prevent a data breach. Some of the most common methods are the following:

  • Anti-Virus Software
  • Firewalls
  • Two-Way Authentication

While utilizing these suggestions is a start, the most beneficial way of protecting your system is by monitoring all payment activity. As a business owner, it is your responsibility to look for suspicious activity or vulnerabilities at every computer and POS machine in your establishment.

Companies like Netsurion have begun offering security solutions such as these to small- and medium-sized businesses.

3. Test Your Procedures

Once you’ve decided to employ end-to-end encryption – or put into place security measures and monitoring techniques to work against cyber attacks – you need to make sure that they’re working efficiently.

Testing will help you find inconsistencies or missteps that could lead to a data breach.

If you have the budget, consider hiring a security specialist to test your POS system’s security measures. Since a POS product may be installed by a third-party provider who may not specialize in security, this simple step can help you and your customers stay safe.

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Why the Switch to EMV Remains Slow – And How You Can Stay Secure

Banks have converted around 60% of their debit and credit cards to EMV cards, which are more secure than traditional magnetic strip technology. These cards generate a random number at the time of the transaction, making them much more difficult to counterfeit than traditional credit cards.

Although the United States is responsible for about 50% of fraud worldwide, the changeover remains slow.

Most of the big retail chains, such as Walmart, Target, and Best Buy, have already converted to the EMV-enabled POS systems. Small businesses that use simple systems have also converted.

However, about 42% of businesses – most of which are mid-sized companies – haven’t made the switch. And, among those companies that have switched, they still run into problems.

In fact, according to some industry reports, 4 out of 5 EMV-enabled card readers aren’t able to accept chipped credit cards.

What’s Causing the Delay?

There are several reasons for this:

  • One problem isn’t the hardware – it’s the software. In order to be able to accept chipped cards, custom POS software must become certified by each of the credit card companies as well as merchant banks. Becoming compliant takes time and only causes more delays.
  • Another problem is the fact that debit cards are processed differently from credit cards. Since these two types of cards are processed differently, it only makes software updates more complex and time-consuming.
  • Also, the EMV credit cards allow anyone to sign for a transaction. Since there is no verification for the signature, this still doesn’t prevent fraud.

What You Can Do to Stay Secure

In the future, we will be able to use these chipped cards with PIN numbers, which will be even more secure than signatures. Implementing this layer of security, though, is a hurdle in and of itself, and will take even more time and money.

Until then, what can you do to make sure you are as secure as possible?

Pat O’Boyle, from MSP Consulting, has this suggestion:

“Pull out the piece for credit card acceptance to get it EMV ready, so you don’t eat all that risk. Then once your POS vendor is EMV ready and you’ve upgraded with all the right tools in place, then put the EMV payment back into the overall system.”