November 17th, 2015 by Elma Jane
Within the payment processing industry, Merchant accounts are categorized according to how they process their transactions.
There are two primary merchant account categories:
Swiped (Card Present) and Keyed (Card-Not-Present).
Swiped or Card-Present Transactions: Are those in which both the card and the cardholder are present at the time the payment is processed, they physically swipe their customers credit card through a terminal or point-of-sale system.
The sub-categories within this group include:
Retail Merchants – Normally conduct their business in an actual storefront or office space. They primarily use counter-top terminals or Point-of-Sale systems. Restaurant Merchants – Requires a special set-up that allows for tips to be added to the final sale amount by settling the transaction with an adjusted price that will include the tip amount.
Wireless / Mobile Merchants – They use wireless terminals or mobile phones to run these transactions in Real-Time. Have the ability to accept credit cards transactions wherever they are located out on the road.
Hotel / Lodging Merchant – Will authorize a customer’s credit card for a certain sale amount.
Card-Present Transactions also include grocery stores, department stores, movie theaters, etc. Card acceptance settings where cardholders use unattended point-of-sale (POS) terminals, such as gas stations, are also defined as card-present transactions.
Keyed-In or Card-Not-Present Transactions: Whenever the transaction is completed and the cardholder (or his or her credit card) is not physically present to hand to the seller.
The sub-categories within this group include:
Mail Order / Telephone Order (MOTO) – The customers card information is gathered via over the phone, fax, email or internet and then manually key-entered into a terminal or payment gateway software. Once the transaction is approved and completed, the product is then shipped to the customer for delivery.
eCommerce / Internet – Conduct ALL of their business over the internet through a web site. So all credit card transactions are processed online via a payment gateway in real-time. The payment gateway is integrated into the web sites shopping cart. The cardholders card is charged instantly.
Travel Merchants is one example of Keyed or Card-Not-Present Transactions.
Start processing credit card payments today whether Swiped or Keyed.
Give us a call now at 888-996-2273 so more details!
Posted in Best Practices for Merchants, e-commerce & m-commerce, Mail Order Telephone Order, Mobile Payments, Mobile Point of Sale, Point of Sale, Smartphone, Travel Agency Agents Tagged with: Card Not Present transactions, card present, card-not-present, card-present transactions, cardholder, credit card, credit card payments, credit card transaction, ecommerce, keyed, Lodging Merchant, mail order, merchant accounts, merchants, mobile merchants, moto, payment gateway, payment processing, point of sale, POS terminals, Restaurant Merchants, Retail Merchants, shopping cart, swiped, telephone order, terminal, transactions, travel merchants
October 8th, 2015 by Elma Jane
Rules have changed in regards to swiping credit cards October 1st, 2015 with the EMV Liability Shift; which may not cause much concern for most consumers, but for merchants.
EMV compliance isn’t a legal requirement. However, if you’re a merchant that accepts credit cards in-person, then you need to find out whether you’re meeting the EMV Standard. The new rule for the liability shift applies October 1st, regardless of the size or type of business.
What Is EMV Standard?
EMV stands for EuroPay, MasterCard, and Visa, the three companies that originally created the standard.
The EMV Shift is to provide enhanced security and prevent fraudulent activity with credit cards. Updated equipment is also necessary for processing the new computerized cards, and unfortunately, the responsibility of securing up-to-date hardware falls on the merchant.
Since card evolves more instead of cash in our society, fraud and data breaches is on the increase, and now a common occurrence. Adapting new technology is therefore necessary. A hassle for many merchants, but there are actually benefits from all parties involved in a credit card transaction.
Data shows that fraud decreases dramatically when EMV Standards are implemented In Europe. The region has experienced an 80% reduction in credit card fraud, while the USA has seen a 47% increase by NOT implementing EMV standards.
The new liability rules took effect on October 1st in the US, and any party that has not yet implemented EMV-compliant machines might now be liable for fraud committed with counterfeit chip cards. Note that this liability shift only applies to in-person transactions. Phone order and web order transactions will be dealt with as they always were.
For Merchants, it means you’ll eventually need to get new equipment for processing credit cards payments in-person (unless you’ve already done so not too long ago, as nearly all POS terminals sold in the USA nowadays are EMV compliant). For most business owners, it’s a good idea to implement the new system sooner rather than later.
Step to take as a Merchant Until you get your EMV equipment
- Ask for an official ID from customers whose credit card you process.
- Conduct some research to see which EMV system would be best for your business.
- Start shopping around for new payment processing options that are EMV compliant.
If you already have a machine that can process chip cards, you’re fully EMV-compliant.
If you don’t accept any in-person payments, then you’re all set.
If you do accept in-person payments and you do not have a chip card machine, chances are you’ll be fine for a little while. But those of you with a high risk of encountering a fake card (if you are a high-volume business with a large average ticket, for instance) should probably upgrade soon.
Fraudsters are going to be taking advantage of businesses that haven’t upgraded so it’s a great time to switch!
Check out NTC’s EMV/NFC Capable Terminal!
Posted in Best Practices for Merchants, Credit Card Reader Terminal, Credit Card Security, EMV EuroPay MasterCard Visa, Point of Sale Tagged with: chip cards, credit card transaction, credit cards, credit cards payments, EMV, EMV equipment, EuroPay, high risk, MasterCard, merchants, nfc, payment processing, POS terminals, visa
June 25th, 2015 by Elma Jane
A product or service using a credit card or debit card should be efficient, fast and most importantly safe. There are a lot of regulations in place to make sure that the processing of payments using a card is safe and secure. One of the way is the EMV (Europay, MasterCard and Visa) technology, where payment cards used in an ATM and POS Terminals have been embedded with microchips. This form of payment technology has long been in use and is widely accepted in many regions such as Europe, Canada and Asia Pacific. The US, which is considered to be the largest number of plastic card users is one of the countries that have not yet fully optimized this otherwise global standard.
Advantages Of EMV – EMV embedded chip is a lot more secure than the traditional magnetic stripe, especially when it comes to face-to-face credit/debit card transactions. Credit card fraud is rampant, but using this embedded chip has added another layer of protection against consumer fraud. Once the card has been inserted into a terminal, the payment will then be authenticated and processed using the EMV network. The chip within the card is hard to duplicate.
What Does This Mean For Your Business? – You will create more credibility and garner more customers in the market place by utilizing this more safe and secure payment method. There will be increased in consumer confidence.
What Happens When You Don’t Upgrade? – There is a Liability Shift. Currently, If a payment processing transaction has been approved and it turns out to be fraud, it’s the card issuer loss. With the new rule, liability shifts to merchants who has not implemented the EMV technology. When fraud happens, the responsibility falls on the business owner who makes the transaction.
How To Prepare Your Business For EMV? – Upgrade your terminal. Contact National transaction and we’ll help you prepare your business for the EMV migration.
Upgrading your current payment processing system is easy with NTC.
Give Us A Call Now! 888-996-2273
Check our website http://nationaltransaction.com click Demos and Videos to learn more!
Posted in Best Practices for Merchants, Credit card Processing, Credit Card Reader Terminal, Credit Card Security, EMV EuroPay MasterCard Visa, Point of Sale Tagged with: atm, card, chip, credit card, Credit card fraud, debit card, Debit Card transactions, EMV, EMV migration, EMV network, EuroPay, magnetic stripe, MasterCard and VISA, merchants, microchips, payment, payment cards, payment processing, payment technology, payments, POS terminals, terminal
April 21st, 2015 by Elma Jane
An advanced strain of malware called “Punkey,” is capable of attacking Windows point of sale terminals, stealing cardholder data and upgrading itself while hiding in plain sight.
Researchers from Security vendor Trustwave discovered the new strain. The investigation found compromised payment card information and more than 75 infected, and active, Internet Protocol addresses for Windows POS terminals.
Punkey poses a unique threat to payment networks, particularly because it also can download updates for itself.
If the malware author has a new feature it wants to add or updates to get rid of bugs, it actually pushes the malware down from the command and control server, revealed by Trustwave’s SpiderLabs research center. Punkey operates like a typical Botnet.
The malware hides inside of the Explorer process, which exists on every Windows device and manages the opening of individual program windows. Punkey scans other processes on the terminal to find cardholder data, which it sends to the control server.
The malware performs key logging, capturing 200 keystrokes at a time. It sends the information back to its server to store passwords and other private information.
A year ago, security vendors warned retailers against using Windows XP at the point of sale, since Microsoft stopped supporting Windows XP security patches. However, even Punkey is not attacking Windows due to any vulnerability in the systems, so even merchants with newer versions of Windows are at risk.
Punkey just runs like any Windows binary would. Even if the system is upgraded or a new system is put in place, criminals are still getting malware on the POS in other ways.
Many retailers use remote desktop support software, which fraudsters take advantage of, they steal a password and install malware like a technician would install any software.
While Punkey represents a more sophisticated POS malware than Trustwave has seen previously, merchants can still protect themselves through attention to basic security best practices.
Merchants should update antivirus and firewall protections, monitor the remote access software, establish two-factor authentication and check network activity daily for anything out of the ordinary. Unfortunately, many organizations have neither the expertise nor the manpower to perform these tasks.
Posted in Best Practices for Merchants, Credit card Processing, Credit Card Reader Terminal, Credit Card Security, Mobile Point of Sale, Payment Card Industry PCI Security, Point of Sale Tagged with: card, cardholder, cardholder data, data, Malware, Merchant's, payment, payment networks, point of sale, POS terminals, retailers, terminals
October 23rd, 2014 by Elma Jane
The U.S. government will replace roughly 9 million government-issued payment cards with EMV chip-and-PIN versions early next year in a push to increase awareness and use of the more secure cards. Between 5 and 6 million prepaid debit cards used for issuing government payments, including Social Security and veterans benefits, will be reissued in January 2015. Another 3 million cards issued to federal government employees will also be replaced with EMV versions through the General Services Administration’s SmartPay program.
All the cards will be set up for Chip and PIN security as a U.S. government standard under the upgrade program, rather than the Chip and Signature approach required by Visa and MasterCard for most U.S. retailers starting late next year. However, there was no indication that the new cards will actually have the less secure magnetic data stripe removed.
Finding the right answers with the latest technologies to stop these cyber thieves and taking proactive and positive steps by adopting PIN and chip technology for government-issued debit and credit cards shows the importance of protecting financial transactions. While EMV is important, it’s not a total solution to the issue of data security.
POS devices at all federal agencies that accept retail payments will also be converted to accept EMV cards on a schedule set by the U.S. Treasury Dept. No timetable was given for the federal POS conversion.
The rollouts at four of the six largest U.S. retail chains will give a boost to EMV, which despite an October 2015 deadline has seen slow uptake among retailers. Under a mandate by Visa and MasterCard, retailers who experience credit or debit card fraud after next October but haven’t upgraded their POS equipment to accept EMV cards will be liable for the loss. If the bank that issued the card hasn’t upgraded it to EMV, the bank will take the loss.
But despite that October deadline, fewer than half of retailers’ POS terminals are expected to be able to accept EMV cards by the end of 2015, and barely half of U.S. payment cards will have been upgraded by then, according to the Payments Security Task Force, a banking industry group tracking EMV uptake.
The 9 million federally issued cards are a tiny fraction of the 1 billion credit and debit cards in use in the U.S., so the overall impact of accelerated EMV conversion is likely to be small. However, the Buy Secure initiative also explicitly includes a consumer-education component. Visa said it will spend $20 million in a public service campaign, and American Express said it will launch a $10 million program to help small merchants upgrade their POS terminals.
Small merchants are less likely to know about EMV than large retail chains, which have been making implementation plans for years.
Posted in Best Practices for Merchants, Credit Card Security, EMV EuroPay MasterCard Visa, Payment Card Industry PCI Security Tagged with: American Express, bank, Chip and PIN, chip and signature, credit cards, data security, debit card fraud, debit cards, EMV, emv cards, EMV conversion, financial transactions, magnetic data stripe, MasterCard, Merchant's, payment cards, Payments Security, POS conversion, POS devices, POS equipment, POS terminals, retail payments, visa
January 13th, 2014 by Elma Jane
Most of the world has already migrated to EMV chip technology. EMV, as commentators have noted, affects not only hardware and software, but every card payment system, device and application. Looking ahead to the 2015 liability shift, stakeholders who have not made the switch should consider these benefits of EMV.
Rather than focusing on any potential expenses, however, stakeholders should instead consider the important elements they have to gain.
EMV is here.
Benefits of EMV:
Global interoperability – Since most of the world has migrated to EMV, U.S. banks can that transition gain the ability to have their cards used with full EMV security anywhere in the world. Further, merchants benefit from this global interoperability as it allows them to process transactions coming into the U.S. from foreign travelers in the same way as domestic transactions.
Higher security – The latest data indicates that 78 percent of all counterfeit card fraud originates in areas where EMV has not yet been widely implemented, and even the most ardent detractors of EMV admit that EMV is very secure.
All stakeholders, gain a higher level of security than was available through magnetic-stripe technology.
Roadmap to mobile – POS terminals that support contactless EMV will in turn enable mobile EMV on NFC at merchants, meaning merchants can take advantages of all manner of popular payment methods, as well as the latest loyalty, location-based and couponing capabilities of mobile.
Posted in Credit card Processing, Credit Card Security, EMV EuroPay MasterCard Visa, Mobile Payments, Mobile Point of Sale, Near Field Communication, Point of Sale, Smartphone Tagged with: card, card fraud, card payment system, chip, contactless emv, counterfeit, couponing, EMV, interoperability, magnetic stripe, Merchant's, mobile, nfc, payment methods, POS terminals, secure, Security, technology, transactions, transition, travelers
