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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.”

Visit our online store to view our complete selection of POS products.

A recent study performed by Forrester Consulting explains that a retail store or restaurant’s future success ties directly into their usage of integrated POS systems.

In our technologically advanced marketplace, a POS system should extend beyond monetary transactions.

By updating the digital usage within a business’ physical location, businesses can achieve a number of benefits:

•      Improved customer experience and interaction
•      Employees that are better equipped and more prepared
•      Enhanced flow of operations
•      Access to increased data sources

Ability to Better Serve Customers

In a pool of 150 surveys:

• 87% of the respondents declared that they are interested in tablet-based POS systems as a means of improving employee-customer interactions
• 93% believe that it is essential to integrate a digital experience into physical locations.

As technology advances and provides better customer experiences, consumers and shoppers are becoming more demanding.

Today’s customers expect employees to have thorough knowledge about the business, including inventory and other options. The majority survey respondents also note that their digital presence has become a direct extension of their physical one. This leads to an increased desire to utilize digitized options within retail shopping and dining.

The following are some of the most common expectations that business owners and employees are being forced to try and meet:

•      Ability to check store inventory, including that of other locations
•      Ability to fulfill restaurant and shopping orders both tableside and in store aisles
•      Rapid checkout procedures
•      Increased customer security assurances
•      Access to customer profile and purchase history
•      Capacity to recommend items and selections

Making the Move to Advanced POS Systems

The vast majority of decision makers who were surveyed also recognized that advanced POS systems positioned them to better meet the needs of today’s customers.

Just as the customer is looking for improvements in their shopping experience, though, businesses face a number of concerns when making the switch to integrated POS systems.

•      High costs
•      System Reliability
•      Customer education
•      Ease of use

All things considered, our society is on the cusp of a major transitional movement.

Customers are more educated and hyper-aware of what is available, while businesses are working dutifully to meet their evolving needs. It will be interesting to see what the next few years will bring in terms of customer-employee interaction.

Visit our online store to view our complete selection of POS products.

When it comes to the ever-expanding world of POS systems, keeping up with the jargon can seem daunting.

However, to keep up with the changes in POS technology, it’s a good idea to learn some of the latest terminology.

1. mPOS (mobile POS)

mPOS refers to using any mobile device in the same way that you would use a traditional, stationary POS system.

Any of these electronic devices can be transformed into a mPOS by downloading an app created by companies like Square or PayPal. An mPOS system can be a cost-effective way for small business owners to handle their retail transactions.

2. PCI (Payment Card Industry)

PCI refers to the collection of security standards that have been put into effect by the Payment Card Industry to protect customers during their use of various POS systems.

These policies directly apply to any company or organization that accepts payments through the use of credit and/or debit cards.

3. NFC (Near Field Communication)

NFC works by placing two objects within close range of each other in order to use them.

Utilizing radio communication, this recently developed technology has been a game-changer in the retail world.

Mobile payment systems like the following make use of NFC technology:

• Apple Pay
• Samsung Pay
• Android Pay

4. mCommerce (Mobile Commerce)

Also known as e-commerce, this term covers any transaction that is handled online through electronic devices like:

• Smartphones
• Tablets
• Laptops

When customers are using their mobile devices to purchase from online markets like Amazon and Ebay, they are taking full advantage of mCommerce retail.

5. IoT (Internet of Things)

IoT is an acronym that refers to the “Internet of Things.” This term refers to the collection of everyday objects and devices that have the ability to send and receive information to one another.

Such machine-to-machine (M2M) communication will allow virtually any electronic device, from a refrigerator to a cell phone to a security camera, to communicate with other devices. In turn, these devices will be connected to the internet, enabling revolutions in POS and other business software systems.

It’s been over five years since Google released their first version of a mobile wallet, and since then many other companies have followed suit.

Here are a few of the bigger companies jumping on board the mobile wallet bandwagon:

• Apple
• Samsung
• Walmart
• Chase Bank

Mobile wallets provide consumers with the ease of using a smartphone as their main source of payment – eliminating the need for traditional wallets, plastic debit/credit cards, and cash. The idea makes perfect sense, yet the majority of shoppers have not jumped onto the bandwagon.

Of all the technological developments that are taking place, what seems to be wrong with this one?

David Salisbury of Star Cloud Services has a few ideas:

1. Retailer Acceptance

If the hope is for consumers to use their mobile device as a universal payment platform, then retailers and businesses would need to participate.

However, many business owners have not made the switch to POS systems that accept mobile wallets. Or, if they have, they may only accept certain versions.

For a business to convert its existing POS system, it would have to apply updates that can get quite expensive. Many small business owners simply don’t have the funds necessary to adapt to this necessity.

2. Inability to Store Picture ID & Other Vital Card Information

When it comes to shopping, consumers have more to worry about than cash or credit.

An individual’s wallet may hold dozens of different card types at any given time, including:

• Driver’s License, or Picture ID
• Individual Store Credit Cards
• Shopping Reward Program Cards

Until a mobile wallet is able to store all necessary information for any card type, it seems unlikely that shoppers will be getting rid of their billfolds.

3. Itemized Digital Receipts

Digital receipts that are received through mobile wallets don’t currently offer itemization.

This is problematic for both shoppers and retailers. The amount of time it will take to handle returns, exchanges, or other post-purchase questions would be much greater using digital wallet receipts.

In essence, they serve more as payment verification than anything else.

Conclusion: These Problems are Fixable

It seems quite likely that we’ll eventually see a major rise in mobile wallet usage, once these obstacles are overcome.

If developers consider the previous issues, consumers will be much more willing to use their products, and the entire process can be successfully streamlined.

Visit our online store to view our complete selection of POS products.

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.

About Beagle Hardware

In the past 12 months, we have seen data breaches from large companies such as Target, Home Depot and Staples. Big banks and health care systems have also been victims of cyber attacks. With technology always advancing, these attacks will continue to happen. Below are some tips to help prevent and minimize the chances of a data breach for you and your company.

1. Frequently change pins and passwords to personal accounts.

By doing so, you can help keep track of which websites have your information saved on them and how long that information has been saved.

2. Constantly monitor all financial accounts for suspicious activity.

Although we now live in the digital age and primarily use online banking, your chances decrease significantly if you also keep a written copy, such as a checkbook ledger, after making major transactions.

3. Properly dispose of sensitive data.

Make sure to shred any documents that are no longer needed that include important information such as social security or credit card numbers. Also make sure that those numbers aren’t saved on computers when you dispose of those as well.

4. Control physical access to business computers.

Give each employee their own login and username to prevent unauthorized use. Keep computers locked up during non-business hours.

5. Freeze credit cards in the case of suspicious activity.

This will make sure to protect your money while you figure out the situation.

6. Do not overshare on social media.

Whether it be for a company or personal, too much information can help making theft easier for the hacker. Wait to post comments or stories about a vacation until you are back home.

7. Keep software up to date.

Update software as soon as it is available for security and web browsers as they can detect security vulnerabilities.

Have you already been part of a security breach? What should you do now? First, do not panic. Get a copy of your credit report and double check for any unauthorized transactions. If you notice anything out of the ordinary, put a freeze to your account immediately. Then call issuer to dispute charges and obtain a new card. Finally, make sure to change all passwords and pins to prevent future situations.