Pin & Chip, PCI Compliance & All that!

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For the last two - three weeks I have gotten letters and phone calls (left messages) from my merchant processor wanting to speak with me about changes that may affect my business. 

The letter stated that my current reader would not be able to process the new EMV cards and that they were offering a special deal on a new reader.  I am assuming that since I did not bite, they started calling.  Then another letter, since I did not answer, asking me to call.  I did and finally made contact with Jan.

After hearing her out, I realized it is just a sales pitch to get me to purchase a new reader NOW.  She said that as early as the end of the year I may not be able to process transactions because some banks would be changing over by then.  

I asked (no answer) why I have been able to process such cards (chip/pin) from the UK as recent as this last month. 

Searching (not long) I found that the card companies have set deadlines for merchants to be fully compliant with proper readers by 2015 or experience fees.  I think my processor is seeing this as a way to push new machine sales NOW. 

 

 

gillumhouse's picture
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05/22/2008

I have been getting 3 and 4 of those robo calls EVERY day for the last couple weeks. As soon as I hear the magic words I hit disconnect. They are driving me to the new system faster than they know with all the calls. DH had 3 today while I was out of town.

Madeleine's picture
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We've been processing the chip cards but they may also have a stripe. I have to check next time we get one. Probably less than 1% of the cards have been the chip cards.

So by the time I need to have a new machine we may have moved on to Square.

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Generic's picture
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02/24/2011

Currently at Chip & PIN cards have magnetic stripes. You should talk to your processor to see if they are Chip & PIN (EMV) ready before you buy equipment.

And yes, eventually everyone will need to change equipment. Processors need to be up and ready in 9 months. Some of the large ones should be ready or will be soon. But the timelines are much further off into the future. Merchants have an advantage if they are ready in that PCI compliance is forgiven, but what's the point if your processor can't handle them, yet? Call your processor and ask about their timeline to impliment on their end and then on yours.

In Canada they were late by several months and they had a plan in place for when to switch my equipment. But they only did it once the plan was in place and they could process.

I imagine this early and considering how this stuff is in the US that it's likely lowlives praying on people who don't know. Deal directly with your processor and tell everyone else to take a hike.

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One reason I was not taken by her urgency is the announcement in the last few days of Starb ucks partnering with Square as their method of card processing.  Square is not currently compatable with chip/pin cards.  I do not think a large company like Starb ucks would agree to make such a change if it would not work for some cards by the end of 2012.  It is my thinking that Square is working on this issue and will have a solution before the deadline. 

Meanwhile I found a Euro company that is much like Square which does take such cards and is marketing in the US now.  - Slightly higher than Square from what I saw. 

An article I read during this brief search stated that more will be popping into the market soon. 

Generic's picture
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You read it wrong. They are partnering with them for NFC. Not for anything to do with the magnetic stripe. The magnetic stripe is DEAD. 75% of the world (outside of the US) has converted off of it already. And the US is on it's way to converting from it. 

Notice that the European company that you pointed out has a chip reader. I'm actually impressed, it is the first company that I have seen that is C&P ready and that the unit is bluetooth, so that the customer doesn't have to hand you a card (which is a requirement here). What I don't see if what currencies are available and how payments are being made to your account. For example, it might prove problematic for me to process in USD or GBP as I don't have an account in either currency. Though I imagine getting a commercial account in USD shouldn't be a problem. But how do the payments come, electronics or through SWIFT and woud I have extra charges related to swift?

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Eric Arthur Blair wrote:

You read it wrong. They are partnering with them for NFC. Not for anything to do with the magnetic stripe. The magnetic stripe is DEAD. 75% of the world (outside of the US) has converted off of it already. And the US is on it's way to converting from it. 

Notice that the European company that you pointed out has a chip reader. I'm actually impressed, it is the first company that I have seen that is C&P ready and that the unit is bluetooth, so that the customer doesn't have to hand you a card (which is a requirement here). What I don't see if what currencies are available and how payments are being made to your account. For example, it might prove problematic for me to process in USD or GBP as I don't have an account in either currency. Though I imagine getting a commercial account in USD shouldn't be a problem. But how do the payments come, electronics or through SWIFT and woud I have extra charges related to swift?

OK so now I know what NFC means...  That is just downright crazy!  Phone gets stolen and so does your CC.  I would not take the gas passcard no way.  This either! 

I did not look at the Euro Co. sight for long, but they did have 2 ways to use their system.  Us it as a gateway (? right term) guess like Autho rize.net and then to your existing merchant processor or as the processor itself (rate was 2.95%) both have $.40 per trans fee (going by memory)  Did not look at any more detail than that.  BUT I am interested in this, just more research. 

Old faithful CASH is looking better and better! 

Generic's picture
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02/24/2011

NFC - Near Field Communication. Basically, you are supposed to put a lock on your phone anyway, so no one else can use it. And now you know why...

Do you know how insecure Paypass and VisaWave are? Essentially, it's the same sort of thing. Read http://www.cbc.ca/news/technology/story/2010/05/31/f-rfid-credit-cards-security-concerns.html for more information. You can have your card stolen while still in your pocket. And that is considered card-in-hand. Spending limit is $50. When I go into the supermarket they can use Paypass for up to $50, after that it's C&P only. And yes, the magnetic stripe isn't accepted because it knows that I have an EMV card. You get used to it, and you never have to hand over your card again, they just look at it and press the button and you go.

The European company left me with a lot of questions, so I sent them an email. Don't know if they will answer. I think their EMV solution isn't out yet, otherwise I would see other merchants with it. But I imagine that Square is running around trying to find a solution as well.... they have 9 months to have it done, unless Visa extends the deadline. But I did like what I saw with a bluetooth terminal for C&P. That's cool. The guest puts it on their card and the rest processes. I assume you have to fill in the form before you hand it to them.

Incidentally, that's one of the things that is the biggest change that you have to get used to. You MUST push the amount first before you process. You don't swipe and then write the amount. You put the amount in and then you swipe or use C&P. They have to agree to the amount before it processes.

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