Imagine the toll it would take on your company if your restaurant has become the epicenter of a data breach. Not only would you get a big (and expensive) mess on your hands, you would also risk your good reputation. While this situation is easily avoidable with EMV compliance, it’s well worth it to look into the choice.
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Whether you are prepared to make the leap to an EMV restaurant or you’re attempting to get ahead of the game as you begin a completely new location, here’s a crash course on EMV compliance that restaurateurs, from fast food to fine dining, should be aware.
What Does EMV Compliance Mean?
EMV compliance only means that you have upgraded your restaurant POS to incorporate an EMV chip reader. If you can accept credit cards by including a processor as opposed to swiping a magnetic strip, and then you are EMV compliant!
EMV has been a frequent sight in retail locations since becoming a global initiative in late 2015, but its technology dates back to the 1990s. Known on behalf of its developers Europay, Mastercard, and Visa, EMV chip technology has been used to enhance security through the embedding of cardholder information. All credit cards are essentially little memory banks of information. The magnetic strip and embedded chip are where all the cardholder’s payment information and electronic data is saved.
Where magnetic strip technology remains more vulnerable to hacking, embedded chip cards are magnitudes safer with encryption that is almost impossible to hack and helps prevent counterfeiting. Although most cards have both stripes and chips at this time, we are on the road to chip-only payments. Like smartphones replacing flip phones, it’s merely the direction technology is changing.
The United States was one of the last nations to adopt EMV technology, but worldwide credit card fraud has dropped considerably since its implementation.
What’s the distinction between EMV and NFC?
As we mentioned, EMV is an acronym for Europay, MasterCard, Visa, and clarifies the security chip benchmark in credit cards versus the magnetic strip.
When studying EMV you may also hear the acronym NFC, which stands for Near-field Communications. This is the technology that permits data to be transferred by two compatible machines that don’t actually touch. Examples of this are Apple Pay and Android Pay.
Is EMV just for credit cards and NFC just for mobile phones?
No, this is a frequent misconception. EMV is associated most closely with credit cards and NFC with mobile phones, but both technologies can be used with each payment option. By means of example, the chip that makes NFC payments possible in mobile phones are also used for contactless chip cards. Likewise, the EMV encryption technology is used to protect information on both sorts of payments.
Why Should I Create My Restaurant EMV Compliant?
The primary reason why those credit card companies got together to create EMV chips was to reduce the amount of fraud payouts they are liable for. Typically, any merchant that doesn’t have an EMV compliant system will then be accountable for fraud such as chargebacks, where formerly it was the credit card companies on the hook for all these losses.
While the probability of needing to repay massive fraudulent charges in a restaurant are slim, there’s a possibility you could end up having to pay chargeback amounts if a user with a fraudulent card receives through your stripe-only system. Precisely how much money that ends up costing you depends on the business you operate; it may be as small as a breakfast sandwich or as large as a nice dining table for eight. But even when the cost is something as small as a latte, these very small costs can accumulate over time, compounded even further for restaurants, because working on razor-thin margins is your norm.
4 Tips for Easier EMV Compliance On Your Restaurant
1. ) Educate your employees on EMV compliance
It’s imperative that you train your entire staff thoroughly in relation to some new technology changes. For a update this substantial, schedule a team training session for everyone on the same page at once and answer everyone’s questions jointly. Ensure shift supervisors have even more rigorous training so that there is always an expert on hand at each shift.
2. ) Help your guests know EMV compliance
EMV implementation is not just about training your employees, it’s also about informing your customers. Businesses have adopted this technology at different paces and in a variety of capacities, which means that your visitors may have questions. Train staff to explain any new procedures for your customers, and make sure they explain that this technology is advantageous to both of you because it makes transactions protected and cuts down on fraud.
3. Look out for fraud
Educate your employees to keep a look out for fraudulent cards. Cards that include only a magnetic strip and no EMV chip are increasingly rare, so these should raise some cautionary red flags. Be sure the staff is asking IDs, and if a card was declined, ask a new kind of payment.
4. ) Plan ahead
It’s very probable that we’ll start to move toward a pay and PIN option, as opposed to the current pay and sign procedure. If you’re making a massive investment on your restaurant’s technician for EMV implementation, ensure the technology you select can grow with you into the future.
How Your Restaurant POS Can Assist With EMV Compliance
Most cloud-based restaurant POS systems include EMV compatibility supplying you with a laundry list of alternatives past earnings, yet the experience remains unchanged for customers. Using a”chip and signature” method, your customers won’t notice any difference in the manner in which the bill is paid, split, tipped upon, or confirmed. However they will appreciate the comfort of knowing that their information is encrypted and protected.
►►► ConnectPOS is a cloud-based POS software compatible with multiple platforms including Magento, Shopify & Shopify Plus, and BigCommerce.
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