Card Not Present, CenPOS, credit card processing

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Card Not Present, CenPOS, credit card processing

Tag Archives: EMV terminal

PCCharge Replacement With EMV Certified Terminals

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What can merchants replace PCCharge with? How would it impact your business if PCCharge suddenly stopped working? October 1, 2015 is end of life and end of support, so planning replacement is critical. Because it’s also the same date as EMV liability shift, merchants will want to update to EMV and NFC compatible solutions to optimally serve customers.

Verifone PCCharge is Windows based software program which uses an internet connection to process transactions. It’s compatible with all acquirers (credit card processors), and the ‘wedge’ card reader is the most common retail set up. magtek mini card swiperThere are no similar EMV certified card readers certified to any processor currently.  Because EMV transactions require customers to hold onto their card for the transaction, no change is anticipated.

Option one is a cloud based solution called a virtual terminal. Unlike PC software, the gateway is always up to date; merchants login to a secure web page or to integrated POS software. All virtual terminals use an internet or cloud based payment gateway.

Payment Gateways quick facts:

  • Certified to each processor
  • Certified for functionality, including card brand, transaction type, level III processing, contactless (Applepay for example) and even industry (retail, restaurant)
  • EMV requires a special certification: each credit card terminal is certified to each processor
  • Functions vary widely. Some are very much like desktop terminals but with data now web accessible, and others are intelligent platforms with a variety of merchant efficiency, security, and profit optimization benefits.

Payment gateway overview:

Each processor has their own gateway. For example, First Data Global GatewaySM  e4 or Paymentech Orbital® Payment Gateway. There’s also independent or third party gateways. For example, CenPOS or Authorize.net. Third party gateways provide flexibility to change processors at will without disrupting operations, among other benefits. For all non-integrated solutions, the payment gateway manages the consumer facing terminal.

EMV Certified Terminal Confusion:

Semantics is a big problem surrounding EMV today. The hardware is first EMV level 1 and level 2 approved. Then the hardware has to be EMV certified to work with each processor. If there’s a gateway, the gateway has to certify each terminal to each processor. Marketing messages like ‘get you EMV ready’ and ‘EMV capable’ make it very unclear which solutions merchants can actually turn on and process an EMV transaction today vs get you capable to process in the future when certifications are complete. For this reason, merchants must be very specific in asking whether they can accept EMV transactions immediately for any solution purchased.

Payment gateways with certified US EMV terminals:

verifone MX915 EMV terminal

Verifone MX915 multilane signature capture terminal

  • CenPOS: Verifone MX 915, certified First Data, certified TSYS*, Chase Paymentech. Ingenico iSC 250. This article will get outdated fast. Contact us for the latest certifications.

As of 10/29/15 there are virtually no gateways with US EMV certified terminals other than CenPOS.

* TSYS provides flexible connectivity options for all the big acquirers. By certifying to TSYS, merchants can use the certified solution with First Data, Vantiv, NPC, Paymentech, Moneris, Global, Heartland, Elavon and others.

Option two is a countertop or desktop terminal:

Verifone VX520 VX805 EMV terminal

Verifone VX520 with VX805 EMV terminal

Because the EMV transaction requires more memory than in the past, older countertop terminals cannot support EMV, even with an added pinpad. First Data has their own proprietary equipment; Verifone is one of the most popular brands for use with all acquirers, including First Data. The Ingenico iCT220 and iCT250 are also add on peripherals. Countertop terminals, and most gateways, do not support level III processing, critical for business to business merchants to lower merchant fees.

In summary, merchants can replace PCCharge with a universal payment gateway with certified EMV terminal, with a proprietary payment gateway that has certified EMV terminal, or with a countertop terminal, often with a separate EMV peripheral. It’s very important to ask any equipment supplier if they unit is certified for use today vs in the future.

WHICH IS THE BEST EMV SOLUTION TO REPLACE PCCHARGE?

  1. For business to business, there is only one solution that meets all B2B business needs: CenPOS.
  2. For multi-location retail, and big ticket  or high risk sales (electronics, auto parts), CenPOS.
  3. For mom and pop retail, the VX520
  4. For restaurant, quickstop and grocery, I don’t know, I don’t have experience in those industries.

If your business processes more than $1M annually and you need help with EMV, contact us.

Free EMV terminals

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emv smart card

EMV chip smart card.

Did your bank offer you a deal for $200 off an EMV terminal? Or another merchant services provider? Beware, everything that’s free comes with a price. Since there are so few terminals that are actually EMV certified, vs EMV capable terminals to accept chip cards, merchants can easily be pushed into the wrong solution for your business.

Distributors, manufacturers and any company that has a commercial account component (business to business), or that has a a mix of card not present and retail, should NOT use any desktop terminal. This will cost merchants a fortune in extra merchant fees that could be avoided with the right solution. Additionally, risk of increased losses from fraud could also rise.

Free terminals are not really free. The merchant account has to generate enough revenue to pay for it. If you were offered a free EMV terminal, we’ll price match your written offer, but more importantly, we’ll provide sound business advice for distributors, manufacturers, B2B, including HVAC and building supply companies.

We offer solutions that will work with your existing merchant account. Due to our many financial relationships, we’ll help you choose the best EMV terminal for your business needs, looking at the whole picture. 90% of merchant services salespeople only have one option, so that’s all they recommend, whether it’s the best or not.

Need An EMV Terminal? 8 Questions Distributors Must Ask

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emv smart card

EMV chip smart card.

Thinking about updating to an EMV compliant terminal to accept chip cards? Do you accept payments online today or plan to in the future? Choose a cloud based solution that will address all omnichannel sales needs current and future. Once you’ve narrowed your list of prospective vendors, use these questions to quickly identify differences.

Questions to ask before the demo:

  1. Is the terminal EMV certified today for my processor? This is critical because many companies are behind schedule.
  2. Can I use with any merchant processor? The average company will change processors. Flexibility is key to business continuity.
  3. Does the gateway support level III processing for retail?
  4. Does the gateway support 3D-Secure?

An no answer to any of the above is a deal breaker. Accepting a yes will inevitably lead to pain sooner or later.

Questions to ask to identify virtual terminal differentiators during the demo:

  1. Can you demo a swiped transaction with a commercial card requiring level III data?
  2. Can you demo how a token is created and use in a transaction? Do you perform a zero dollar or a one dollar authorization when a token is created?
  3. Can you show how to manage users and their permissions (roles)?
  4. Can you show how to research transactions?

Knowledgebase:
EMV stands for Europay, Visa, Mastercard, the three companies that developed the standard for the security chip.
3D-Secure, including Verified by Visa or Vbyv, are optional security standards for online payments.
EMV certified – terminal approved for use and can be activated immediately.
EMV capable or ready – hardware is certified; equipment and or application is not yet certified
Virtual Terminal – web browser based solution to securely accept payments

EMV Chip Terminal Buyers Guide

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Merchants and developers are racing to implement EMV terminals to accept chip cards ahead of the October 1, 2015 merchant liability shift deadline. Buyer beware- some ‘EMV Ready‘ terminals may never be certified.

EMV READY VS EMV CERTIFIED

Credit card terminals advertised as EMV Ready, EMV Capable or EMV Compliant are terminals that ‘could’ accept chip cards in the future. But, the terminal must be certified to the processor. Due to the expense and time, not all terminals will be certified. If the terminal is driven by a POS application or payment gateway, both the solution and the terminal must be certified to each processor or merchant acquirer.

Tip: Beware language like “this terminal will get you ready for EMV”.

The image below from First Data shows specific terminals that solutions partners have submitted that their integrating, however, there’s no guarantee any will ever be completed.

CenPOS, an end to end payment engine, offers the only independent payment gateway with US EMV certified terminals available for all major processors today.

CenPOS has offered gateway driven certified EMV terminal solutions since January 2015. Is CenPOS right for your company, POS, or ERP?  Click here to view the full EMV Buyers Guide.

Christine Speedy is a global authorized reseller of CenPOS, specializing in B2B, omnichannel and integrations.

Apple Pay EMV Ready Terminal Ad Review

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applepay emv terminal

Apple Pay EMV terminal advertisement.

I received this attractive ad today in an email. At first glance, it looks like an Apple offer, but the fine print below says “Apple does not sponsor, endorse or promote this offer. 
Apple Pay is currently available only in the United States.” Let’s review the ad and the landing page at http://link.emlservices2.net/u.d?bYGu4iinutyt1X88jzB=1.

The merchant fees advertised by Total Merchant Services, a First Data ISO, are 1.59% plus $.19 per transaction. The fine print of the offer is not shown. However, this type of offer is for ‘bundled’ pricing. That means it starts at a low retail swipe rate for certain cards, but other types of cards and key entered transactions will be at a much higher rate to achieve the desired profit margins. Nothing wrong with making a profit, but this type of plan is only suitable for certain small retail businesses because bundled pricing always costs more than interchange plus pricing. Additionally, they’ll need to recoup the cost of the free terminal either through a long term contract or high profit margins or both.

The ad message is clear that your business needs to be ready for EMV Compliance and buying this terminal will get you there.  While the terminal is EMV ready, as of today, the unit has not been EMV certified on First Data. Since they’re promoting it, someone is probably working on the certification, but for now, the terminal is EMV capable, or in their words “EMV Compliant”.

“YOU will be RESPONSIBLE for CREDIT CARD FRAUD if you do not have an EMV-compliant terminal by October 2015.” Beginning October 2015, either the issuer or merchant that is the cause of a contact chip transaction not occurring will be financially liable for any resulting card present counterfeit fraud losses. Lost and stolen card use is not applicable for Visa, but is applicable for MasterCard. The card brands also have differing exceptions and extra incentives to encourage adoption of EMV. Refer to EMV deadline misinformation is rampant for more information.

apple payIs it an Apple Pay Terminal? That’s just sales jargon. The terminal supports NFC or ‘contactless’ payments, including Apple Pay and Google Wallet.

Ingenico iCT250 emv terminal

Ingenico iCT250 emv capable countertop terminal.

Note, the iPhone and iWatch are not included and it’s not a mobile terminal. The Apple products shown are items that consumers can use to make payments with Apple Pay.

In summary, nice ad, and easy way for small businesses to update their terminal with a quality brand. If you like their deal, I’ll match any offer they make – and offer an additional incentive- because I know it’s going to be profitable!

My core customers process over one million annually; They’re not required to change processors and this isn’t the solution I’d recommend for them.