Transcription
New Payment StandardsEMV, ApplePay and Android PayPresented by Tom Epstein, CFECEO of Franchise Payments Network
What Does this Guy Know? Tom Epstein – CEO of Franchise Payments Network – theleader in Payment and loyalty processing for the Franchisespace for 10 years with more than 160 Franchise systemssupported. On the IFA Marketing and Technology Committee and headsup the PCI subcommittee. Written many articles for all Major Franchise publications andspeaks at many conferences each year on Data Security forFranchisees among other topics. On the Data Security Counsel for the Electronic TransactionsAssociation (ETA) the main association for paymentsprofessionals.
What is EMV?
So the deadline passed and my POSstill seems to work
What about this Liability Shift?There are two very important things toremember about the Oct 1st EMV Deadline:1. In order to shift the total liability from yourfranchisee to the card issuers you wouldneed to achieve 70% or more of your totaltransaction via EMV
Who Can and Can Not do thatActually No one can do that at this time! As of Oct 1st there were only about 27% of thetotal cards in the market with Chips on themAdditionally If you are a membership franchise like a Message,Fitness, Tanning etc you will never make thisthreshold due to your monthly membershiptransactions Sit Down Restaurants unless they adoptexpensive pay at the table solutions
Is he talking out of both sides of hismouth?The Chip transaction is a much safer TransactionSo for those 30% or so transactions that you dotake you may be able to reduce your franchiseesrisk of Chargebacks on those transactions alone.
So when will all this really matter? This is going to be a slow migration It is estimated that it will not be until 1st quarterof 2017 before we will see 70% cards with chipsin the market All cards will continue to have the mag strip aswell for the next 5-7 years – so are the chip cardsreally that much safe in the case of theft? Still much debate about requiring Chip and Pinvrs Chip and signature
NFC Apple Pay, Android Pay
NFCWhy is this a potentially better solution in thelong run? The card is never physically present at thetime of the transaction The card number is tokenized via a onetimeuse token before it is transmitted to the POSso there is nothing for a hacker to try todecrypt
Conclusions All Merchants will eventually need to add EMVcapabilities unless your business is 100% online You do have some time, but need to beaddressing this now You should be communicating to yourFranchisees what your plan is and why so theyare not panicking If your going to upgrade to EMV you might as welldo NFC at the same time for little to no extra cost.
Tom Epstein, CFECEO Franchise Payments Networktomepstein@franchisepayments.net
NFC Apple Pay, Android Pay. NFC Why is this a potentially better solution in the long run? The card is never physically present at the . use token before it is transmitted to the POS so there is nothing for a hacker to try to decrypt. Conclusions All Merchants will eventually need to add EMV capabilities unless your business is 100% .
