In the aftermath of the EMV liability shift, the major trend in payment security has been the migration of fraud from card-present situations to the online world. EMV technology has been very effective at fighting card-present fraud, and as a result nearly every store that has adopted EMV has seen plummets in fraud. As overall EMV adoption increases, fraud decreases.
But there’s one industry that’s been left behind, and is still seeing major card-present fraud: the restaurant industry. The prevailing reason restaurants are still the target of fraud is simple – the restaurant industry has not adopted EMV as quickly as the rest of the retail world. Why Restaurants Are The New Target
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Customers want more than most retailers are able to offer. Modern consumers want to buy online but pick up or return at the store. They want to browse product information on their laptop or smartphone, get coupons or discount codes, even make a purchase on their mobile phone while in a store. New consumers are naturally combining channels as they browse, research and buy.
High risk has to do more with the charge back exposure since the acquiring/sponsoring bank is responsible for all charge backs if a business were to cease business and close for any reason. A better way to characterize a business as high risk is ‘harder to place’. Why then is a business “harder to place” for taking credit cards?
They just keep coming. A new junk fee I recently came across. I am often asked what is your rate? It’s not about one rate, one needs to look at the sum of the total. Here is another example of another “junk fee”. ‘Monthly Funding Advantage’ is a made up fee. Also, I am seeing a new junk fee called “EMV non-enabled Fee” at a rate of 3 basis points. This fee will hit restaurants that do not have a POS to accept Chip Cards.
If your business has a website that takes credit cards, beware of a fraud that is increasing. Non-profit businesses are more at risk because the obstacles to prevent the fraud are normally not used. The fraudsters’ use e-commerce websites to test stolen credit card numbers to see which ones are still good. This type of fraud is up 200% in the first four months of 2017 compared to the same period last year according to a report from Radial’s E-commerce Fraud Technology Lab.
How About More Revenue!
You know you have a great product you offer to customers, then why not let them purchase a gift card to give to a friend? Build loyalty too. Promotional give away. Use for refunds, instead of cash. More and more I am asked questions about the following subjects. In an effort to clear up confusion, we hope this article will help to inform you.
Back to the lower court for new settlement discussions or a trial…
Visa & Mastercard Settlemen Update To add to this subject and mention new information, a law suit was filed recently by the Attorney General of New York. Read more on the link provide below. The company involved is Northern Leasing Systems. This is just one company involved in this “leasing” industry. In the complaint it mentioned deceptive sales practices, which I have heard about from business owners. In additional it states, “Northern Leasing’s lease terms are onerous and totally one-sided in favor of the company. The credit card equipment leased to consumers by Northern Leasing is valued at only a few hundred dollars (at most) when new, yet over the course of a Northern Leasing lease consumers pay thousands of dollars for the equipment.” This echoes info in my previous post where I mentioned the cost. Again, do not lease your credit card terminals or equipment. It is just not a good business decision.
http://www.ag.ny.gov/press-release/ag-schneiderman-sues-northern-leasing-systems-inc-deceptive-business-practices-and If you have any question about this, please feel free to contact us at info@tampabaymerchantservices.com or call 727-916-7294 I am noticing more and more merchants using Square for processing their credit cards. On the surface, Square may seem like a good option and for some it may be. If you are just starting out and not sure how well your new business may take off, and depending on what you are selling or services of your new business, perhaps it is a good option. For example, right now it is more of a hobby than a thriving business. Square might be a good option.
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February 2024
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