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EMV Transition Has Been A Nightmare For Businesses. This Guide Should Help.

EMV Chip Card

EMV Transition Has Been A Nightmare For Businesses. This Guide Should Help.

EMV Chip Card

 

Transitioning to accept EMV chip cards has been a nightmare for businesses, small and large. And the result of this confusion has been loss of millions of dollars and growing, in fraudulent chargebacks!

So here is a must-read EMV transition guide that will walk you through everything you need to know step-by-step.

What is EMV?

EMV stands for Euronet, masterCard and visa. It is a security standard adopted by the payment industry to reign in on billions of dollars of credit card frauds committed every year in US alone. This security standard has been adopted in most parts of the world, but is still fairly new to the United States. It just had it’s first year anniversary.

EMV is also popularly referred to as ‘chip card’ as well.

Why should I upgrade my equipment?

For starters, EMV Compliance is NOT a law as many people assume. You are not doing anything illegal if you still using the old “Swipe and Sign” process on your terminal or integrated POS.

However, it is important to know that you will be held liable for any fraudulent transactions that happen at your location because you did not upgrade to an EMV compliant equipment.

Previously when you fell victim to a chargeback, the issuing bank investigated and based on the proof submitted, covered you for the disputed amount.

But starting October 1, 2015 the responsibility has been shifted to the merchant or the one with the weakest link in the payment process.

The image below is a great illustration to help you understand these changes:

emv-email-img-blog-1

 

Chargebacks have been on rise exponentially, in thousands of dollars every month, especially at Lounges/Bars, High-End Restaurants, Liquor stores and Gas stations.

A discovery channel video below shows how easy it is for credit card fraudsters to make fake credit cards and use at your locations.

How to upgrade and how much it cost?

The first step to upgrade to EMV is to understand your needs. Do you need to be able to accept EMV chip cards only or you need to adjust tips as well on those EMV transaction.

Or you  want your customers to enter their debit card PIN on those EMV transactions?

There are various different features that you need to be aware of and then decide the terminal model.

Especially if you are a business that takes tips.

Not ALL terminals support tip adjustment at the end of the day. It depends on the type of terminal and the processor that supports it.

There are 2 components that make up your EMV compliance.

  1. Hardware – The equipment needs to have the slot to enter the chip card
  2. Software Certification – Software needs to be certified by the processor for that particular hardware to accept EMV.

Every processor supports different terminal/hardware for EMV and Tip Adjust. So for example, if Ingenico ict220  is supported by First Data for EMV + Tip Adjust, does not mean all other processors will support the same hardware for EMV + Tip adjust.

The terminals below are certified by First Data to accept chip cards.

  1. Verifone Vx520 – Accepts chip cards, Accepts Tip adjust after the sale.

           Recommended for restaurants or businesses that accept tips.

 

Verifone Vx520

 

 2. Ingenico ict220 – Accepts EMV chip cards + Tip adjust.

Recommended for businesses that need to accept tips.

 

Ingenico 250

 

Approx: $250

3. Clover Mini – Accepts EMV chip cards with Debit PIN + Tip adjust, Apple Pay and Android Pay and can connect using Wi-Fi.

Features to Note:

  1. Customer can sign using their finger on screen and opt for text, email or paper receipt.
  2. Clover Mini can also be connected to cash drawer and replace your old cash register.
  3. Retailers can also download Register software and turn this into a full fledged POS SYSTEM.

Recommended for any businesses that need to accept debit cards with PIN, better receipt management or POS functionality.

clover-mini

Approx: $450

  1. FD 130 – Accepts EMV chip cards + Tip adjust, Apple Pay, Android Pay and can be connected using Wi-Fi.

Recommended for businesses that need to accept tips, and Debit PIN

FD 130 EMV

 

Approx: $350

Once you figure out what features you need and what terminal you want to buy, it’s time to go shopping.

BUT, let me warn you – Don’t just buy from the cheapest place you can find. You might buy something that’s totally worthless for you. Not all equipment will work with your processor. Usually, the terminals are locked to a specific processor just like how your cell phone is locked to works with a certain wireless provider.

Don’t just buy from the cheapest place you can find. You might buy something that’s totally worthless for you. Not all equipment will work with your processor. Usually, the terminals are locked to a specific processor just like how your cell phone is locked to works with a certain wireless provider.

Usually, the terminals are locked to a specific processor just like how your cell phone is locked to work with ONLY certain wireless provider.

Option 1:

If you already have a service provider you can call them and ask for their pricing but make sure they are not locking you in multi-year processing contract, a lease or any monthly rental fee.

It’s ALWAYS best to buy your own equipment. Not only will you get the best deal on your processing but you have the flexibility to move your processing to someone else and use the same terminal.

The saying ” There is NO free lunch” cannot be more true in credit card processing industry.

A brand new Verifone VX520 should not cost you more than $250. If the provider quotes anything more than that, here are two things you should do:

  1. Buy your own terminal online and stay with your current company if you are happy with their processing rates. But before you place an order, ask your processor if they support Verifone Vx520 or any other terminal you wish to order and will provide all the features you need.

Pitfalls to look out for while ordering online:

  1. Never buy a used terminal as they may be locked to work with certain processor only.
  2. Avoid buying from Ebay, Craigslist, or Amazon or any other reseller sites. Many companies will sell you very cheap just so they can get you into processing agreement with them. Just make sure you do your homework.
  3. Look for a new company that will provide a terminal at a fair price or subsidized price for the equipment.
  4. While hardware equipment is one component of your merchant account, processing rates are something that must NOT be ignored.

Always make sure you are getting a fair deal without any contracts. To understand a little more about the same, definitely read through our post on how to get best deal on your merchant processing.

Or better, subscribe to our FREE Savings course and learn how to save ridiculous amount of money on credit card processing by clicking  HERE.

We hope this guide was simple to understand and will help you in implementing the EMV migration successfully.

We here at Onesto Payments believe in absolute transparency and love to educate our customers. Feel free to contact us to get our equipment and credit card processing rates. You will be glad you did.!

 

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Why You Should Seriously Consider Owning Your Clover POS System

Why You Should Seriously Consider Owning Your Clover POS System

featured_why-you-should-seriously-consider-owning-your-pos-system

Implementing a POS system is a process that requires time and patience, and many small business owners may feel overwhelmed by the choices they are presented with.

How do you choose the right system? Can you afford to purchase your system outright? What sort of technology and hardware will the system come with? Are there any hidden fees? What are the costs for processing? Any POS system is a major investment, and one that shouldn’t be taken lightly.

If you’re considering installing a POS system for the first time – or even if you’re upgrading to a new system or shopping for a better alternative – there are a few things you should know about owning your system first.

Ask these 6 questions before you buy your POS system
Click Here

clover-pos-station-front

Do You Need a New POS System?

For the most part, you should only be investing in a new system if it’s going to be an improvement on your current situation. It’s important to understand how your POS system fits into your overall business goals.

Are you trying to save money because you want to expand your business? Are you frequently missing money that should be in your cash register, and you want a better system of accountability? Are your customers asking more about Apple Pay?

Whatever the reason, you should first make a list of goals that your POS system could help you accomplish.

Then, ask yourself what you can afford.

There’s more to a POS system than just technology. You have to consider the cost of implementation, installation, credit card processing charges, and most importantly, support. Which situations are covered by the initial costs of purchase? Will you be paying for anything out of pocket if something goes wrong? Will there be any surprise fees at the end of the month? Can the POS change with your business, without causing a disruption in service or loss of current income?

When you’re shopping around, it’s important to have these questions in the forefront of your mind, and here’s why…

clover_station

The Hidden Costs of Your POS

The average lifespan of a POS system is about five years, so any financial investment you make will be a commitment.

The cost of an average POS system can be broken into a few categories:

  • Hardware – This includes bar code scanners, receipt printers, or any other gadgets you will use to process payments
  • Software – Every POS system requires computer software, which runs the hardware
  • Integrations – If you want a POS system that works with other software that your business is currently using, like an accounting software, there’s likely an additional fee for it
  • Credit card processing – There is often an additional fee for your business to accept and process credit cards
  • Service and support – Some POS companies provide service and support as a flat fee each month, but others include it in the overall package price. You may also have to pay a training fee in addition to support fees

Traditionally, small businesses purchase POS systems outright for a one-time fee. This often requires business owners to save up money to make the purchase or take out loans to supplement the income if the business is struggling.

This one-time fee also doesn’t account for credit card processing fees, support fees, or any upgrades your software or hardware needs to go through in the 10 or more years you will own it, and with the constantly evolving technology available today, it’s only a matter of time before your system becomes obsolete.

You also have to worry about maintenance. While owning a POS system means you have full control over your data, it also means you have to pay for any maintenance issues that arise.

With all of that weighing on your shoulders, we can understand why upgrading your POS system can be a daunting process.

But what if we told you there was a better way?

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Why You Should Rent to Own Instead

Although making a one payment may sound appealing at first, it can actually cost you more in the long run, especially if things go wrong or technology continues to shift the way it has been for the last several years.

You may be all but required to upgrade to features like Apple Pay to stay relevant.

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In fact, as technology advances, you may be all but required to upgrade to features like Apple Pay to stay relevant. And if you want the latest technology, you should buy a system that can handle it.

But what if you’re strapped for cash, or you’re still not sure you need that technology just yet?

A better option for you might be rent to own, which would allow you to rent your system until you can afford to buy in outright. You pay a flat monthly fee of $59/month for your POS services, and you can upgrade to all the latest features without needing to put down a large payment up front. This ensures that you will be able to meet customer demands both now and in the future without having to sacrifice your finances.

Rent to own is also a great option if you’re not technologically savvy. It’s important to consider the technical support available when looking at POS systems. As we mentioned before, many systems offer support for an additional fee and don’t cover everything you need.

And you don’t have to worry about maintenance, since most rent to own systems are based on cloud technology, so there’s no physical server that can malfunction during business hours.

Even if you do know your way around technology, keep in mind that even the most competent person will at some point need help, whether with installation, transition, or simply to answer customer questions. You want a system that comes with a great team that can answer all of your questions (and problems, should they arise) in a timely and efficient manner without costing you more money.

Here are 6 questions to ask if you want to own your POS
Click Here

Final Thoughts

So, should you own your POS? Yes. But you don’t need to make a huge commitment to reap the benefits of the latest technology. Rent to own is a great solution for small businesses who want to upgrade but have tight budgets or need more support for their customers (or for themselves!).

One thing to keep in mind when looking for a POS system is to focus on what you really need, not just right now, but in 10 years from now. The biggest complaint we hear from business owners is a lack of transparency from POS companies who tell them they will be getting features they never end up using (or they don’t get features they end up needing).

That’s why it’s important to take the time to clarify what you need now and to be informed about what changes you may want to make to your business (e.g., Will you expand? Will you start an online store?). Don’t be afraid to ask tough questions, and remember that your POS exists to serve YOU, not the other way around.

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A Beginner’s Guide To Using Apple Pay

A Beginner’s Guide To Using Apple Pay

Launched in 2014, Apple Pay is Apple’s mobile payment service that lets the user purchase goods or services using debit or credit information stored in the iPhone. This means you can actually buy things with a touch of your finger or wave your hand over an enabled Point of Sale (POS).

Voila! Looks interesting, right? Yes, it is!

It’s incredibly safe to use as the card information is stored on a Secure Element – that is never synced out of the cloud. The authorization is handled by a passcode or Touch ID. One-time tokens are created to make the payments and your card’s information is never shared with the retailers.

Currently available in the US, UK, Australia and Canada, Apple Pay works on iPhone 6, iPhone 6s, Apple Watch, iPad Pro, iPad Air 2 and iPad mini 3, including their newer versions.

To make this payment model a success, Apple has collaborated with more than 500 banks (and counting). Some of the names that are on board are Visa, Mastercard, American Express, Wells Fargo, Citi and Chase. You can check theentire list on Apple Pay’s website.

McDonalds, Starbucks, Petco, Sephora, Target, Anthropologie, Staples, Panera, Chevron, Macy’s and Whole Food’s are just a few brands that accept payments via Apple Pay from the overwhelming, ever-expanding list of 220,000+ retailers.

source

In the US, 20% of iPhone users reported using the service at least once. So if you meet all the criteria for using Apple Pay but don’t know where to start from, let us help you out by answering three basic questions.

How does Apple Pay work?

The payment system makes use of a type of wireless technology called NFC or “near-field communication”. It allows you to make payments within a small distance to a retailer or restaurant’s corresponding card reader – that only accepts payments once you have confirmed.

Source

Why should I use Apple Pay?

It is not easy to digest the fact that a technology as complicated as this can make conducting transactions so simple!

But trust us, this is real and it is happening – all thanks to Apple Pay.

  • Fast: Apple Pay offers a super quick mode of payment. This means you don’t have to stand in long lines to complete the transaction. The payment can literally happen on your fingertips.
  • Safety: It is more secure than traditional credit cards. It requires Touch ID or fingerprint verification to complete the purchase. Do you know that you don’t even need to look down at your iPhone during the transaction? All you have to do is wait for confirmation – which happens through a “subtle vibration and beep”.
  • Convenient: Now you don’t have to worry about “not carrying your cards”. You can make purchases while on-the-go! And if, God forbid, you lose your iPhone with the credit card information stored in it, wipe it clean by using the “Find My iPhone” feature and put your device in “Lost Mode” to lock itself down.

How do I start using Apple Play?

Before start making purchases, you need to set up Apple Play on your device. Here’s how you can do it:

  • Open Wallet in your iPhone. If you are on your iPad, go to Settings and choose Wallet & Apple Play.
  • Tap the plus sign at the top-right corner of the screen to add card preference – credit or debit.
  • Tap Next.
  • Enter the details of your card manually. You can capture the image of your card with your device as well.
  • Tap Next. Your bank will then verify the information and determine whether or not, you can add the card to Apple Play. You might even have to provide some additional information to verify.
  • Once the verification is done, tap Next.

Your Apple Play is up and about. You can now make your first transaction.

While Apple Pay is a fantastic option to make payments with, it is not available “everywhere”. For retailers, especially, making secure and honest transactions is a must.

Onesto Payments, for instance, offers solving payments and POS challenges for small businesses. The solutions provided them are ideal for all retail formats and the customers are free from the risk of being cheated by technology providers.

Want to learn more about their various modes of payment? Visit the website or call on 201-546-5555 to book a free POS consultation right now!

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The EMV Liability Shift Checklist For Small Businesses

The EMV Liability Shift Checklist For Small Businesses

Running a small business efficiently is a tough job. But becoming liable for credit card frauds that might occur during business makes the going a lot more tougher. As the EMV chip cards come to the United States, it is time to prepare yourself for small changes that will only reduce fraud and boost your customer confidence at the point of sale.

EMV checklist for small businesses

Here’s your 4 step EMV liability shift checklist that you must get started with right away:

1. Educate yourself

With the US liability shift getting introduced, small businesses that are generally unprepared will face the risk of scams. The best way to protect yourself and your business from this is to understand how the EMV chip card technology works, stay up-to-date with US liability shift policies and know exactly what to expect from chip enabled terminals or payment processors.

2. Create a robust EMV Enablement Plan

Look for a provider that can supply you with an EMV enabled card reader who can support contactless payments and traditional magnetic stripe cards. While the upgrade is important for securing your business, keeping the customer’s needs in mind is also a wise idea. Get a clear picture of the time, money and training necessary to ensure a smooth transition, and how the provider will help you with it.

3. Ask more questions

Hold a discussion with your payment processor and ask him questions around enhancing security and how they will help you reduce the point of sale transaction fraud. Some point of sale providers have integrated payment processing that simplify the transactions as well as save time.

4. Find what suits you the best

Gather price quotations from payment processors and assess the costs. The cost of upgrading to EMV point of sale technology can vary greatly based on the quality of the software, as well as the features, functionality and the level of support offered by the provider. While doing your research, keep in mind the reliability of the hardware, ease of use and the type of support that will be available to you right from the beginning of the transition.

And most importantly, lookout for hidden fees. Reliable POS providers will not just help you understand the entire process, but will also offer a transparent pricing model.

Time to protect yourself from frauds and get ready for a positive business year ahead!

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