Novera Payment Solutions

EMV is coming to the USA and it's time to plan for the EMV transition.

17-20 million EMV cards were in use in the USA as of May 2014, according to the EMV Migration Forum. A report by the Aite Group projects up to 70% of US credit cards will have EMV chips by 2015.

As a result of the EMV transition, some fraud liability will shift to merchants beginning on October 1st, 2015, which is right around the corner.  The Novera team wants to ease your transition to EMV with important information that you need to know. 

We'll be publishing a series of blogs over the coming months to help you with the transition, and we thought the logical place to being is with a basic timeline of the EMV transition.

EMV Transition Timeline for Merchant Liability

APRIL 1, 2014

The transition actually started in early 2014 with these two items for VISA merchants:

• VISA : Card issuer liable for all unattended, online chip card terminals that support transactions without a signature or PIN
• VISA : New, unattended, online chip-enabled terminals must support transactions without a signature or PIN

JULY 1, 2015

VISA : All new and existing unattended, online chip-enabled terminals, except ATMs, must support transactions without a signature or PIN hardware upgrades are recommended by this date.

OCTOBER 1, 2015

ALL CARDS
Counterfeit liability shifts to merchants if a Non-EMV-enabled POS device is used for a card-present EMV chip transaction, except for automated fuel transactions and ATMs (excluding previous liability shift for International Maestro ATM transactions)

AMERICAN EXPRESS & MASTERCARD
Liability for lost or stolen cards shifts to merchants using Non-EMV-enabled POS device
for a card-present EMV chip transaction, except for automated fuel transactions.

DISCOVER & PULSE
Liability for lost or stolen cards shifts to merchants using, 1) Non-EMV-enabled
POS device or, 2) EMV-enabled POS device that does not support PIN for a card-present EMV chip transaction, except for automated fuel transactions.

OCTOBER 1, 2017

ALL CARDS
Counterfeit liability shifts to merchants using Non-EMV-enabled POS device for a card-
present EMV chip transaction for automated fuel transactions.

MASTERCARD & DISCOVER
Liability for lost or stolen cards shifts to merchants for automated fuel transactions using Non-EMV-enabled POS device for a card-present EMV chip transaction for automated fuel transactions

As a Business Who Accepts Credit Cards, Here's What you Need to Know About EMV Now

In a nutshell, the USA credit cand debit card payments industry has been chugging along on old technology while the rest of the world has implemented EMV card technology for more than a decade.

As recent data breach headlines suggest, criminals focus on the easiest targets and right now, that is the USA. But not for much longer.

In order to avoid potential liability while ensuring customer transaction security, many merchants plan to implement EMV technology. As a country, the USA is moving toward the EMV standard as a direct result of the payment networks shifting specific fraud liability to merchants starting on October 1, 2015.

The bottom line is that you need to understand what your liability is as a merchant and how to protect yourself.  This is where the Novera Payment Solutions team comes in. If you are aren't sure where to start, or even what questions to ask, please take the time to contact us. Our goal is to make your transition as easy as possible. Our hands-on, consultative approach to the credit card payments industry, not only saves our clients money in credit card processing fees, it also saves them in lost time trying to weave through the complicated maze of credit card processing liability.  Novera Payment Solutions is a team you can count on for all aspects of your credit card processing needs.

"Chargeback" is a term  used to describe when a customer disputes a charge on his or her bill. This typically happens when a customer doesn't recognize a charge, the customer is double-billed or charged the wrong amount, or the customer is dissatisfied with the merchandise or service.

Chargebacks can be costly for merchants, so it's important to minimize them as much as possible. We thought we'd share 5 steps you can take NOW to help prevent chargebacks over the busy holiday shopping season. These chargeback prevention tips can be classified in two categories: 1) proactive; and 2) reactive. We recommend the proactive steps first so you can prevent the customer from initiating the chargeback in the first place.

1. Post Your Return Policy and Make it Easy to Find
   
   Your return policy is your best friend when it comes to preventing chargebacks. Make sure it is very clear and it is easy to find on your website and in your store. Your return policy is also part of your defense when you have to dispute a chargeback claim, so if you don't already have something in writing, make sure you create one before the holiday shopping season starts.
   
   
2. Provide Excellent Customer Service
   
   Holiday shopping can be frantic for both merchants and consumers. Merchants are busy beyond capacity at times. Consumers are in a hurry, purchasing products/gifts they wouldn't normally buy, and making lots of impulse buys. Both scenarios can lead to customer service issues and chargebacks.
   
   Most consumers will contact the merchant to resolve a dispute first, then initiate a chargeback if he or she doesn't receive assistance or a refund from the merchant. When contacted by one of your customers regarding dissatifaction with a product, be prompt in responding to the customer and attemp to resolve the dispute. Refunding a customer's money up front could actually cost you less than losing a chargeback dispute down the road.
   
   
3. Communicate with Customers
   
   This is especially important for online merchants. Let your customer know when his or her order is expected to ship and how long the shipping will take. If you have an item out of stock or on back-order, let the customer know immediately.
   
   
4. Practice Truth in Advertising
   
   If you are running deep holiday deals and specials, make sure the terms are clear so you don't surprise your customer. If you run out of a particular item that was on sale, do not substitute another item in its place without the consent of your customer. Surprises lead to chargebacks. Avoid surprises at all costs.
   
   
5. Use Best Practices When Processing Credit Cards
   
   This means swipe the card when possible, get a signature, and verify the signature. If you are online merchant, use address verification and CVV/CVC codes. A short training session with your employees ahead of the holiday shopping rush can help you avoid unnecessary chargebacks.

About Novera Payment Solutions

Novera Payment Solutions is a leader in the credit card payments industry. We are committed to helping businesses improve their bottom line by providing significant savings on credit card processing fees through our innovative and trasparent flat fee merchant account pricing models. We are confident we can save your business money on credit card processing fees!

Unfortunately, the holiday season is also a big season for scams and fraudulent activity. We often think of these in terms of email phishing attempts and fraudulent credit card transactions, but did you know gift cards are a prime target for this kind of activity, as well?

According to the IC3 (Internet Crime Complaint Center), gift card tampering and balance theft should be of concern to merchants. Because of their anonymous nature, "gift cards offer multiple outlets to turn them into cash, and can be used as a way to launder money."

We've all received gift cards in one form or another .... either an actual physical gift card, via e-mail, and even via social media or mobile.  Because gift cards are available in such a variety of forms there are multiple ways to commit fraudelent activity that not only harm consumers, but merchants as well.

One of the most "popular" forms of gift card fraud occurs when a theif steals an inactive card from a store display, then records the card number and access code and returns it back to the display. Once the card is purchased by a consumer and activated at the checkout register, the funds are then available for the thief to use online. All the thief has to do is regularly check the available balance to determine when the card is active.

Another method being used by criminals is copying the bar card information off of a merchant gift card. They then create duplicate/matching bar code stickers and attach them to multiple gift cards on the display. These gift cards are then purchased by unsuspecting consumers.  When activated, the actual funds are added to the thiefs original card rather than to the actual gift card purchased by the consumer.

A third method used by fraudsters is searching online for people who have gift cards listed for sale. They call the seller and ask the seller to confirm the balance available on the card via a three-way call between the seller, the "buyer", and the merchant's IVR. The seller then enters the card number and pin using their keypad during the three-way call. What they don't realize is that the "buyer" is using software to capture the card number and pin in the background. Armed with that information, they can use the funds online to make a purchase without ever paying the seller for the card.

Many retailers find that the biggest source of fraudelent activity is found in employees. A customer comes in to pay for merchandise using a gift card. When the transaction is complete, the customer's card still has a remaining balance, but the employee switches and gives them a card back that has no balance available. The employee then takes the customer's card and spends the remaining balance.

The best way to prevent fraud as a retailer is to be educated about the methods that thieves are using. This enables you to be proactive. A few suggestions for retailers:

• If you use a card display, place it near your registers or where it always has a team member nearby.
• Make certain that zero balance cards from customers are destroyed.
• Keep close track of blank cards.
• When purchasing gift cards for your business, be sure to talk with your provider about security measures included with the card. The small added cost for additional security can save you money over the long term from losses due to fraudulent activity.

About Novera Payment Solutions

Novera Payment Solutions is well known as a leader in the credit card payments industry and is committed to helping businesses improve their bottom line by providing significant savings on credit card processing fees through our innovative flat fee merchant account pricing model.

Novera Payment Solutions Advantange

• Novera Payment Solutions's consultative approach allows us to thoroughly educate our clients, equipping them to better understand this complicated industry.

• We take the mystery out of the credit card processing business.

• We work with all types of businesses across the country.

Contact Novera to learn more about how we work with businesses  to provide the most fair and transparent pricing structure available on the market today for credit card processing and gift card program strategies!

A story in the NY Times on July 25^th reported that a gang of hackers stole and sold 160 million credit card numbers from more than a dozen companies.  The crime originated out of Russia and the Ukraine and caused hundreds of millions of dollars in losses.

Criminals have become very sophisticated and you need to be vigilant that your credit card or your personal information is not being used for fraudulent activity.

In previous posts we discussed the importance of protecting cardholder data. As a business owner, you are also a consumer ... so what should  you do if YOUR credit card information is compromised?

Report the Loss or Theft Immediately

• Act fast to limit your liability for charges you did not make
• Most companies have a toll-free number and 24 hour service to report stolen cards
• Once reported, you cannot be held liable for any other unauthorized transfers/purchases after you report the issue
• Follow up with a letter or email
• Check your statement carefully
• Check to see if your homeowner’s or renter’s insurance covers the liability

What is your maximum liability?

If someone does use the stolen credit card before you report it, you may still have some liability.  Here are the thresholds of liability:

• If you report the card loss before any unauthorized charges are made, your liability is zero
• If you report within 2 business days after you learn about the loss, your liability is $50 maximum
• If you report the loss more than 2 business days but less than 60 calendar days, after your statement is sent to you, your liability is $500 maximum
• If you report more than 60 calendar days after your statement is sent to you, then you are liable for all money taken from your account and possible more (money in accounts linked to your debit account)

How to Protect Your Cards and Account Information

For Credit and ATM or Debit Cards

• Don’t disclose your account number over the phone unless you initiate the call.
• Guard your account information. Never leave it out in the open or write it on an envelope.
• Keep a record of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.
• Draw a line through blank spaces on charge or debit slips above the total so the amount can’t be changed.
• Don't sign a blank charge or debit slip.
• Tear up copies and save your receipts to check against your monthly statements.
• Cut up old cards — cutting through the account number — before you throw them away.
• Open your monthly statements promptly and compare them to your receipts. Report mistakes or discrepancies as soon as possible.
• Carry only the cards you'll need

A final piece of advice – protect your PIN carefully if using ATMs or Debit Cards.  Don’t carry the PIN with you (or on your phone).

For more information on protecting yourself and your identity, visit http://consumer.ftc.gov.

About Novera Payment Solutions

Novera Payment Solutions is well known as a leader in the credit card payments industry and is committed to helping businesses improve their bottom line by providing significant savings on credit card processing fees through our innovative flat fee merchant account pricing model.

Novera Payment Solutions Advantange

• Novera Payment Solutions's consultative approach allows us to thoroughly educate our clients, equipping them to better understand this complicated industry.

• We take the mystery out of the credit card processing business.

• We work with all types of businesses across the country.

Contact Novera to learn more about how we work with businesses  to provide the most fair and transparent pricing structure available on the market today for credit card processing.