80% of companies FAIL an interim Payment Card Industry Data Security Standards (PCI-DSS) audit. It’s time to admit it- you’re company is one of the many struggling to keep up with new rules.
Have you noticed $19.95 fee sneak back into your merchant statements?
Check your quarterly scans. You may discover a scan failed with a reason related to SSL. Fight back to stop these monthly fees. Not only is it premature, but the Payment Card Industry Security Standards Council (PCI SSC) changed the migration to date requiring TLS 1.1 encryption or higher from June 2016 to June 2018.
“We keep all cardholder data in a locked file drawer and I’m the only one with a key” does not comply with PCI 3.0 standards.
Every moment a paper form exists, there’s an opportunity for misuse and identity theft. If your company extends credit, then Red Flags Rules also apply. The FTC can seek both monetary civil penalties and injunctive relief for violations. All told, the expense of a breach could run over a million dollars, uncovered by insurance, plus ongoing lost business due to damaged reputation.
If a third party touches card data, they’re required to register with the card brands and have an annual on-site audit. That includes your payment gateway, caging service, and other software if their payments are not segregated from the applications. Click here to search the Visa service provider database
How can we collect cardholder data for B2B card not present customers without our credit card authorization form?
PCI Compliant credit card authorization form example: Video
Training & educational videos https://www.youtube.com/user/3Dmerchant/videos
CenPOS is a processor agnostic end to end payment engine that increases EBITDA virtually instantly. From compliance to automating collections, we solve everyday business problems. Protecting the front door with US EMV certified multi-lane terminals for all processors and the back door with 3-D Secure certified solutions for customer initiated sales. Now in over 140 countries.
Feb 01, 2016 1:04 pm | Christine Speedy
Replacing ICVerify or other legacy software for batch credit card processing? Whether you’re in the cloud, or headed there, methods of payment processing have changed to meet current and future requirements for PCI Compliance and fraud prevention. For service providers, … Continue reading
Jan 25, 2016 11:14 am | Christine Speedy
Winter Storm Jonas is a reminder of the importance for business to business companies to accept payments online. What if you have a desktop terminal, but staff is working from home? How can accounts receivable be reached for call in … Continue reading
Jan 13, 2016 8:36 am | Christine Speedy
Getting a VeriFone EMV Vx520, FD55, Vx510, Vx570 CAPK expired error message? Visa has extended the EMV key’s expiration date from 12/31/2015 to 2022, and the terminal must be updated. OPTION 1: UPDATE CAPK FILE ONLY via partial download For … Continue reading
Jan 12, 2016 2:04 pm | Christine Speedy
Ready to improve PCI Compliance with token billing? Step by step instructions for CenPOS card not present token billing including creating, modifying, and using tokens follows. In the virtual terminal admin, Create a new Role* or Modify an existing role … Continue reading
Jan 11, 2016 12:26 pm | Christine Speedy
Need a 3rd party credit card authorization form template? Don’t count on wikiform.org and other internet resources that scrape the internet for free content and then redistribute it. There’s no guarantee that anything published is accurate, legal, or virus free. … Continue reading
Following several years of regulatory and technology credit card processing changes, 2015 has been another big year of changes. As we close out 2015, what are you advising clients to maximize profits? Every consultant to distributors, especially for building materials, including lumber and millwork, electrical, marble & stone, and plumbing supply, needs to update their merchant services knowledge. These businesses tend to have both a retail and a ‘to the trade’ component, making old solutions potentially outdated, risky, and costly.
- EMV liability shift October 2015, shifted liability for counterfeit card, and sometimes lost and stolen card, transaction losses from the issuer to the merchant, if the merchant does not support EMV chip card acceptance. Since businesses never saw this fraud, the financial risk is unknown, but guesses put it in the 1-2% of sales range. The first acquirer (Vantiv) announced penalties effective January 1 if a retail operation does not support EMV chip card transactions. These fees will grow throughout the payment chain in 2016, and be passed down to the merchant. If profit margins are important, EMV compliance is not optional. Between growth in credit card fraud losses and new penalties, distributors need to make the change ASAP.
- EMV terminal selection. Retail Distributors fall into two categories: Those who use countertop terminals, and those who use anything else, including mag swipe reader or signature capture terminal. Only the latter are even capable of supporting level 3 data, critical for qualifying for level 3 interchange rates, which makes up more than 95% of credit card processing, or merchant, fees. Yet, the vast majority of recommended EMV solutions are incapable of level 3, and or there is no certification for it. While updating, add NFC for ApplePay and newer payment methods, and P2PE, which encrypts at the terminal head, further mitigating data breach risk. The best EMV terminal selection for distributors may reduce merchant fees an average of 32% and mitigate data breach risk. Conversely, the wrong choice will directly reduce profit margins.
- PCI Compliance. Internal and external data breaches are a serious growing problem (Lowes and Home Depot both admitted), and best practices are being shared among peers that are ‘risky’ at best. Top areas of concern are paper credit card authorization forms and electronically storing card data (without certified compliant tokenization such as a payment gateway). Both should be eliminated. Online pay pages and other technology solutions have negated the need for employees to ever have access to credit card data, not even for a minute. Has your own company eliminated them?
- Quickbooks. For operations that used Intuit Merchant Services because there was no other integrated choice, that’s no longer an issue. Third party integrations empower businesses to use any acquirer. Look for one that supports all payment methods needed (ACH, check, wire, credit card etc). If processing more than $500k annually, fees may drop up to 50%.
CHRISTINE’S RECOMMENDATIONS FOR CLIENT ADVICE TO DISTRIBUTORS:
- Implement EMV ASAP to avoid penalties and fraud losses.
- Only implement an EMV solution certified for level 3 processing to maximize profit margins.
- Get PCI 3.0 Compliant to mitigate risk of financial losses from a data breach- Replace all practices that include credit card access by any employee, even for a minute, with a technology solution.
- Replace Intuit Merchant Services to maximize profit margins.
Note: this advice is applicable to any business that has a customer base which includes some business to business and retail, even if retail is a small part of the overall payment types accepted.
Distributors and manufacturers can overcome PCI Compliance issues with better awareness of rules, and cost efficient solutions to ease PCI burden. A review of key problems and solutions will help companies with internal credit card authorization and storage policies. For credit card processing, a virtual terminal or integrated gateway, is the only cost efficient and secure option for these business types.
It’s never Ok to store credit card forms that have the CVV2, or security code, on them. It’s also never Ok to store CVV2 electronically in any format, encrypted or not. This is both a card acceptance and PCI Compliance 3.0, section 3 Protect Cardholder Data, problem. For any recurring charges, including variable, merchants only need to validate the CVV one time for a fraud check, and then never again. This is easily accomplished with a zero dollar authorization, however not all gateways support this feature.
The best paper credit card authorization form, is one that doesn’t have full card data, or better yet, doesn’t exist at all. If sales reps in the field are getting card numbers to be charged later, consider a mobile payment app that let’s them swipe and create a token, using a P2P encrypted reader. That way card data is never exposed at any point in time. Instead of getting card numbers over the phone, empower customers to self pay or store card data using online payment solutions, including either a hosted online pay page or electronic bill presentment and payment (EBPP). Use this to also eliminate credit card data in emails, which is another PCI Compliance problem.
Need to keep a card stored on file that you initiate charges on? It’s indefensible with today’s technology to have credit card data on paper, and it’s risky to use your own encrypted media. Tokenization, a payment gateway service for merchants to remove sensitive data from their environments, is the best practice for security and PCI Compliance.
Some businesses want a signature on file. A sales receipt is generated with almost any online payment solution and merchants can require a customer to print and sign it, or to simply forward the email receipt from company email address with typed name approving it. For recurring billing, choose a payment gateway that generates a PCI Compliant recurring billing authorization form. They’re useless if stolen, and contain all the right language for credit card authorization. It should be supplemented by a signed document with your own custom business terms and conditions, and limitations for duration and maximum charge amounts allowed. Merchants might also get a signed sales order with all terms and conditions, plus the token ID the customer has agreed you’ll charge to.
Third-party credit card authorization doesn’t exist as far as card issuers are concerned. It’s specifically written in the cardholder terms that they cannot allow any third party to use their card. Any form a merchant creates authorizing other parties is at risk for future disputes. The merchant can eliminate the risk by having the company issue purchasing cards for each buyer, or mitigate risk by sending the sales receipt automatically to the cardholder and asking the buyer to confirm receipt per T’s & C’s.
A huge problem is managing old stored data created prior to new PCI Compliance rules. The reality is, the merchant is not PCI Compliant as long as the old stuff exists. That likely means someone will need to be assigned to identify all the past ways that credit card numbers were captured. For electronic, IT will need to get involved to securely remove old data. There are tools to search emails and servers for card data as well.
PCI 3.0, in effect now, requires merchants not only are PCI compliant at a point in time, but that there’s a plan in place for monitoring and inspecting. Whoever is cleaning up the old problems should document who, what, where, how and when activities were identified and or completed, and continually add this to the master PCI file.
Industry associations bring a lot of value to their members, but are selected partners the best for their customers? Merchant services partners are a perfect example of what’s wrong with some relationships designed to increase buying group power. On the surface the ‘rates’ are great, but there are other factors at play that impact profits. This article addresses the needs of the omnichannel merchant in the building supply industry, including plumbing, electrical, lumber, windows, doors, stone, marble, flooring, insulation, lighting, fencing, roofing, gutters, appliances and more.
Negotiated Merchant Fees and Merchant Discount
The associations usually put together an excellent package for merchant services fees. This includes interchange plus pricing as a standard, with no surprises. More and more include a processing partner that supports level III processing, critical for the commercial side of building supply sales.
The problem is interchange rate qualification, which can impact profits far more than the negotiated merchant discount. Examples:
- Merchants need level III processing for retail. Virtually no companies have a solution to support this. The commercial side of the business will have a very high number of transactions that benefit from level 3 interchange rates.
- Merchants need mandatory payment processing rules. Most solutions rely on employee optional actions to reduce fees; history shows this doesn’t work.
- Traditional desktop terminals are inappropriate for this industry, if for no other reason than NOT ONE supports level III processing.
PCI Compliance For Building Supply Industry
This industry historically is not PCI compliant. While many commercial customers are on account and pay via check, there’s also a huge need for tokenization for variable payments. Most virtual terminals support that, but what about the authorization form to store the card and use for billing on demand?
- Merchants want a signed record of the customer authorization to use the card. Virtually none have a solution for this critical need.
- Eliminating salespeople from collecting credit card numbers by offering customers alternative ways to self-pay and self-store their card data is crucial to improve compliance.
Cash Flow and Collections
Everyone has a story about collecting from their customers. The typical merchant processor has no solution to help merchants manage this. Examples of solutions:
- Hosted pay page
- Electronic bill presentment & payment
- Scheduled variable billing with tokenization
SaaS Technology Partners
A payment technology partner with end to end payment engine, can bring exceptional value to the building supply industry, driving profits, mitigating risk, and creating efficiencies. With a processor neutral solution, merchants have the flexibility to change financial partners at will, without disrupting operations. As the industry expands the point of payment acceptance to include mobile, online and other sources, merchants with a technology partner are able to more quickly adapt and change to meet customer needs.
The Future of Association Partnerships
By selecting both a technology vendor and a merchant services vendor, associations can deliver more value to their members and increase their profits. Associations must address the end user need to maximize profits, which extends beyond a negotiated merchant services agreement.
Token billing solves the problem of storing credit card data for recurring billing customers, but that doesn’t fix the merchant problem of replacing credit card authorization forms.
Video Transcript: Meet Mary. She manages accounts receivable. The problem is credit card security. Customer approval is needed for accounts on file. Image credit card authorization form. But there’s no secure way to store the authorization without also storing the credit card number and security code.
Until now. Introducing 3D Merchant Services. Cloud payment solutions that work with YOUR financial partners. Here’s how it works. Create a token. Image iphone, computer with virtual terminal screen, batch upload, point of sale, and integrated solutions. Anywhere. Or have customers create and manage their own. Electronic bill presentment and payment, ecommerce, online payments. And then, for every token created, a prefilled form is automatically created! PCI DSS compliant.
Call 3D Merchant Services 954-942-0483 for a demo and free trial.
Author: Christine Speedy. “PCI compliance is virtually impossible without a technology solution. The right payment gateway selection is critical to merchant success and reduced PCI burden.”