In case you haven’t heard, the EMV migration is coming. EMV is a security standard put forth by the world’s major credit-card brands, and it’s already appearing on your customers’ cards in the form of a “smart chip.” There have been many questions flying around lately on whether you, as a small business, will have the ability to be ready for this massive shift in the way you take your payments. A growing concern has been: Will QuickBooks™ Point of Sale
be ready for processing EMV Chip & PIN Cards?
Also See: EMV Frequently Asked Questions
As opposed to the old magnetic-stripe cards, EMV chips offer a higher degree of security throughout the transaction process, which aims to substantially reduce U.S. credit-card fraud.
In an effort to facilitate the migration, we will outline some issues and ideas you may want to think about for your QuickBooks™ Point of Sale
. Beginning October 1, 2015, the big four credit-card brands (i.e. Visa, MasterCard, American Express and Discover) are making a “liability shift” from the credit card’s issuer (i.e. a bank or large firm) to YOUR Business in the event of certain types of credit-card fraud.
If your business doesn’t have the newer, EMV-enabled hardware installed and isn’t ready to accept EMV transactions, then your business will be responsible for fraudulent charges. Yikes! Also See: Webstore – QuickBooks™ Point of Sale EMV PIN Pad
1. Audit Your Hardware
Take a look at your existing payment-processing hardware. Do you have simple, stand-alone Magnetic Swipe? Do you have a “canned” or “drop-in” solution that works with your QuickBooks™ Point of Sale
Make a list of your current hardware, so you can compare apples to apples when buying new hardware.
TIP: If you’re considering a hardware upgrade to accept mobile payments, then now might be the time to do so. Why upgrade twice in the next five years at twice the cost when you can do it once and be done? Also See: GoPayment Mobile Processing
2. Discuss Your EMV Hardware Options With Your Payment Processor
Your business’ merchant acquirer can help guide you to payment processors that they work with, who in turn can recommend solutions that fit your business.
If your business uses a heavily customized Point Of Sale, then your ISV should be involved in any equipment purchase, as they will have an important role to play in EMV Certification.
For a complete guide on Merchant Acquirers, Payment Processors, Independent Software Vendors and the rest of EMV basics, see our EMV Essentials article.
3. Purchase Your New Hardware
TIP: Some vendors will offer “Chip-and-Signature” terminals alongside “Chip-and-PIN.” While it’s tempting to go with the signature terminal, opting for the PIN terminal helps you accept PIN purchases from international customers now and prepare for domestic PIN transactions in the future. For a full guide on your options for EMV hardware, check out our article on what you need to know before the migration.
4. Get Your New Terminals Level 3 Certified (If Applicable)
If your payment processor is a single credit-card reader, or if it’s a “drop-in” solution meant to work minimally with your existing Point Of Sale, then you may not need to perform any Level 3 certification; the payment processor and/or acquirer may have already taken care of it.
If your business has a large and heavily customized Point of Sale deployment, then your business might need to take an active role in Level 3 certification. Your merchant acquirer or payment processor should be able to tell you what you need to know. If an outside ISV programmed your Point Of Sale’s retail application, then they will have a role to play in getting that application certified.
Depending on the complexity of your payment processing system, Level 3 certification can take anywhere from two weeks to a few months. The cost of certification also depends on complexity, which can range from a few hundred dollars to thousands. Larger dollar amounts reflect the time and equipment needed to audit a customized or large-scale EMV deployment.
5. Train Your Employees
Once you receive your certified QuickBooks™ Point of Sale EMV Chip & PIN Pad, you will need to train your employees about how EMV works. Here are a few procedural things to keep in mind:
EMV transaction amounts must be entered into the terminal before a credit card is inserted. For most terminals, EMV cards are inserted chip-first and chip-side up.
EMV credit cards must remain in the terminal for the entire length of the transaction. If a card is pulled out before the transaction is completed, then the transaction is cancelled.
For more info, check out our EMV FAQ
6. Know the Difference Between “Chip-and-PIN” and “Chip-and-Signature”
Most EMV markets use the Chip-and-PIN method of completing a transaction, similar to the way a debit transaction works. Most issuers in the United States, however, will be issuing Chip-and-Signature cards. With that in mind, be ready to explain the difference to your employees and customers.
TIP: If you elect to purchase a Chip-and-PIN terminal, you will be able to process PIN transactions from international customers, as well as domestic ones when PIN cards start to hit the U.S. market. If you choose to only integrate Chip-and-Signature transactions, you may need to upgrade your equipment again when Chip-and-PIN transactions become more popular domestically.
7. Educate Your Customers on EMV
Some of your customers might have questions about how to use their cards. Since you’ve already trained your employees, your business will be in a great Point Of Saleition to gain trust by answering your customers’ questions about EMV.
TIP: During the Canadian EMV migration, merchants noticed that many customers accidently left their credit cards in the machine instead of removing it after completing a transaction. An informative placard near your Point of Sale terminals may help alleviate this and other issues.
In order to avoid liability for fraudulent charges, these steps must be completed by Oct. 1, 2015. Once you complete your migration for QuickBooks™ Point Of Sale, your business will be connected to the robust security network that EMV provides, which checks the validity of your customer transaction data throughout the course of the transaction.
Not only will your customers’ transactions be more secure in QuickBooks™ Point of Sale, but EMV terminals also save your business money in the long run by being able to refuse fraudulent transactions at the source. So while the process of migrating to EMV transactions may seem tedious, it’s definitely worth your time.