Envision the toll it would take on your company if your restaurant has been the epicenter of a data breach. Not only would you get a major (and expensive) mess on your hands, you would also risk your good standing. As this situation is easily avoidable with EMV compliance, it is worth it to investigate the choice.
Whether you are ready to make the jump to an EMV restaurant or you are trying to get ahead of the game as you start a completely new place, here is a crash course on EMV compliance which restaurateurs, from fast food to fine dining, should know.
What Does EMV Compliance Mean?
EMV compliance only means that you’ve updated your restaurant POS to incorporate an EMV chip reader. If you can accept credit cards by adding a processor rather than swiping a magnetic strip, and then you’re EMV compliant!
EMV has been a frequent sight in retail locations since becoming a worldwide initiative in late 2015, but its engineering dates back to the 1990s. Known on behalf of its programmers Europay, Mastercard, and Visa, EMV chip technology has been used to help enhance security through the embedding of cardholder information. All credit cards are basically little memory banks of advice. The magnetic strip and embedded chip are where all of the cardholder’s payment information and digital data is saved.
Where magnetic strip technology is still more prone to hacking, embedded chip cards are magnitudes safer with encryption that’s almost impossible to hack and helps prevent counterfeiting. Although most cards have both chips and stripes right now, we’re on the path to chip-only payments. Like smartphones replacing flip phones, it is just the direction technology is shifting.
The United States was among the last nations to adopt EMV technology, but global credit card fraud has dropped significantly since its execution.
What is the difference between EMV and NFC?
As we mentioned, EMV is an acronym for Europay, MasterCard, Visa, and describes the security chip standard in credit cards versus the magnetic strip.
When studying EMV you might also hear the acronym NFC, which stands for Near-field Communications. This is the technology that permits data to be moved by two compatible machines that don’t actually touch. Examples of this are Apple Pay and Android Pay.
Is EMV only for credit cards and NFC only 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 every payment option. By way of example, the chip which makes NFC payments possible in mobile phones can also be used for contactless chip cards. Likewise, the EMV encryption technology is used to protect information on both kinds of payments.
Why Should I Create My Restaurant EMV Compliant?
The main reason why those credit card companies got together to make EMV chips was to decrease the amount of fraud payouts they’re liable for. Typically, any merchant that does not have an EMV compliant system will then be accountable for fraud such as chargebacks, where previously it was the credit card companies on the hook for all those losses.
While the odds of having to refund massive fraudulent charges in a restaurant are slim, there is a possibility you could wind up having to cover chargeback amounts if a user with a fraudulent card receives through your stripe-only system. Just how much money that ends up costing you depends on the company you operate; it could be as little as a breakfast sandwich or as enormous as a fine dining table for eight. But even if the cost is something as small as a latte, these tiny costs can accumulate over time, compounded even further for restaurants, because working on razor-thin margins is the standard.
4 Tips for Easier EMV Compliance On Your Restaurant
1. Train your employees on EMV compliance
It’s crucial that you train your whole staff thoroughly in regards to any new technology changes. For an upgrade this substantial, schedule a staff training session to get everybody on the same page at once and answer everyone’s questions collectively. Make certain shift managers have even more rigorous training in order that there’s always an expert on hand at every shift.
2. Help your guests know EMV compliance
EMV implementation isn’t only about training your employees, it is also about informing your visitors. Businesses have embraced this technology at different paces and in various capacities, so your visitors might have questions. Train staff to explain any new processes for your visitors, and be sure they explain that this technology is beneficial to both of you since it makes transactions secure and cuts down on fraud.
3. Watch out for fraud
Teach your employees to keep a look out for fraudulent cards. Cards that contain only a magnetic strip and no EMV chip are increasingly rare, so these should raise some cautionary red flags. Make sure that the staff is requesting IDs, and when a card has been declined, request a new type of payment.
4. Plan ahead
It’s very likely that we’ll begin to move toward a cover and PIN option, as opposed to the present pay and sign process. If you are making a huge investment on your restaurant’s tech for EMV implementation, make certain the technology you choose 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 providing you with a laundry list of choices beyond earnings, yet the experience stays unchanged for clients. Utilizing a”chip and signature” method, your clients will not notice any difference in the way in which the invoice is paid, divide, tipped upon, or confirmed. But they will appreciate the comfort of knowing that their information is securely encrypted and protected.
Undergroundship.com is the one of the projects of ConnectPOS who shapes the future of 2000+ clients worldwide in an omnichannel journey with a leading Retail POS system.
►►► ConnectPOS is a cloud-based POS software compatible with multiple platforms including Magento, Shopify & Shopify Plus, and BigCommerce.