FYI if you use credit cards

[JohnDHill]

By July 2010, Visa Inc. is requiring all unattended POS units around the U.S. to support the Triple Data Encryption Standard, a mandate that is designed to make it harder for identity thieves to steal debit card data from POS units by shielding the personal identification numbers (PIN) of customers. Cost for this upgrade is expected to be from $1500 to $3000 per credit card accepter

http://usa.visa.com/download/merchants/bulletin_interlink_merchants_tdes_pos.pdf

 

[DivineSuccess]

Thats why we run all of our credit card transactions through our POS as credit and don't allow debit transactions. no one ever enters a pin. and we don't have to worry about securing the transmitting line.

 

[JohnDHill]

Let me explain. We work on both gas stations and car washes. SO we have been involved for a while now. Based on currant available information, If you has an unmanned credit card acceptor (unmanned means that one of your employees is not standing right next to the card acceptor to verify user information– so across the parking lot will not work) this upgrade will be required to accept the Visa cards. This has nothing to do with debit or charge.

 

[Indiana Wash]

And the sky is falling... Why go around spreading fear? I can read "purty good". The pdf clearly says that POS (point of sale) PED's (pin entry devices) will be required to use TDES (Triple Data Encryption Standard). I only allow credit transactions so I don't have a POS PED. Therefore, I won't be required to use TDES.

 

[Bubbles Galore]

Gas stations offer the option to use either debit or credit. Our systems don't offer any type of input like that, it is always ran as a credit card transaction.

 

[MEP001]

Gas stations offer the option to use either debit or credit. Our systems don't offer any type of input like that, it is always ran as a credit card transaction.

Exactly, they will always process as credit. The customer can't choose debit.

 

[JohnDHill]

Believe it or not - it is your choice. All I was trying to do was share information. NOT SPELL OUT DOOM. I was under the impression that?s what this site is for. Well for those of you who may benefit from this I hope this allows you to prepare and find the best alternatives to meet your needs. For the others who feel like I have just wasted your time - I apologize. And I won?t ever happen again. I guess this is only a good old boy site.

 

[Indiana Wash]

Believe it or not - it is your choice. All I was trying to do was share information. NOT SPELL OUT DOOM. I was under the impression that?s what this site is for. Well for those of you who may benefit from this I hope this allows you to prepare and find the best alternatives to meet your needs. For the others who feel like I have just wasted your time - I apologize. And I won?t ever happen again. I guess this is only a good old boy site.

Naw, but that isn't what you did. You said your piece and informed. That's wonderful. However, when someone said that they use POS credit card only, you argued and said that it will apply to all credit card transactions when the notice clearly says i does not. That was the only reason I called you out on it. You weren't merely sharing information, you were arguing even though your information clearly supported the other guy.

 

[ryancarlson]

By July 2010, Visa Inc. is requiring all unattended POS units around the U.S. to support the Triple Data Encryption Standard, a mandate that is designed to make it harder for identity thieves to steal debit card data from POS units by shielding the personal identification numbers (PIN) of customers. Cost for this upgrade is expected to be from $1500 to $3000 per credit card accepter

Just did some research into this and JohnDHill is correct - but this only effects Interlink customers in Canada - not the US.

Also - further research uncovers that it is not a REQUIRED change for a business owner. But there are significant reasons to switch (at some point in the future).

What IS mandated is that all VISA issuing banks must spring the cash to issue all chip-based cards to all of their customers (in Canada).

The incentive for a business that accepts credit cards to switch is that they will have significantly reduced administration and transaction fees. They will have a lower rate, and little or no charge back fees in the case of fraud. IF a PIN is used with a stolen card, the CARD HOLDER will be liable for the charge, not the bank nor the business.

VISA is trying to get businesses to swallow the capitol expense with the carrot of "reduced fees and liability" - but those that keep the standard magstripe readers will maintain the same levels of liability (chargebacks, etc) when accepting chip cards (they will still have a magnetic stripe).

Hope this helps clarify.

 

[ryancarlson]

Side note

One of the big issues with using chip readers for the car washing industry is a lack of water-safe chip readers rated for in-bay use. That was one of the big hold-backs for manufacturers in brining CC acceptance to the wash bay many years ago.

I suspect we as operators will have the ability to maintain a "wait and see" policy on how the whole chip-card holds out. The United States is one of the last places to hold out against mandating this change because of the vast number of vendors that would be effected.

Europe had such a terrible time with CC fraud due to the Russian mob they went to PIN / Chip Cards - then the Mobsters moved to Canada. Once 2010 rolls around we can expect to see a rise in CC fraud in the United States as we become one of the last countries without high-security clearing.

The take-away here is - don't panic. Online shopping, retailers selling Plasma TV's, and businesses with high dollar per ticket items are at the largest risk for CC fraud. Car washes, laundromats, and fast-food restaurants are very LOW on the priority list for criminals using stolen cards. The only thing car wash operators need to be aware of is customers that are abusing dial-up (batching) credit card systems that don't clear transactions right away. A car wash down the street from me had their CC to token machine cleaned out. Turns out some punk used a $0.00 prepaid 'gift card' VISA to get several hundred dollars worth of tokens out of the machine. Only reason the guy got caught was that he was selling them for half-face value in the parking lot in exchange for cash (all caught on video).