New cc chips? How will this affect cryptopay?

[cap732000]

I have been reading all this information about the new chips going into the credit cards does anybody know how this will affect the cryptopay system will new swipers be required or?????? Anybody did research on this yet?

 

[Randy]

I don’t think anyone really truly knows. The Crypto-pay reader is a mag stripe reader and I think it’ll be years before the mag stripe credit card goes away entirely and no one knows when that will be. The US is about the only country that still uses the mag stripe card. I do know that converting over the car wash entry systems, ACW’s to accept the chip enabled cards is going to be very expensive since the card readers have to be weather resistant.

 

[MEP001]

There's no use in getting excited about it yet - people went nuts when the dollar coins were introduced and so many people were in a panic thinking they had to retrofit everything to stay in business, and still nothing has changed there.

 

[Earl Weiss]

Spoke to my Gas Station equip supplier. Says the software for the POS needs to be updated but the readers at the pump have 2 years to be done. Perhaps this is because those readers go thru the POS before they go out to the network.

 

[Dcalhoun]

I might be wrong about this, but the issue isn't that we won't be able to accept new cards with old technology. Rather, the retailer will be responsible for disputes. In other words, VISA and Mastercard won't eat them and investigate as they do now. We, retailers, will be responsible and VISA/MC will just charge back the amount plus a "fine" to us for being non-compliant. It seems to me the bad guys will figure this out quickly and we will see many more disputes that we will have to eat.

I just can't seem to think this is no big deal so I need someone to talk me off the ledge.

 

[chip@laurel]

There will be a self serve educational roundtable discussion on this tomorrow (Thur) at the ICA show, 9:15am. Cryptopay, Worldpay and Magtech rep's will be there.

 

[cap732000]

I called cryptopay to see what they said and many of
Your comments are accurate. For there equipment nothing will change at moment they referred to the countries who are using this technology and as they said they still all have the magnetic strip after 10 years. It will affect many other types of retail more than car wash and laundry mats. They gave many examples "I can't remember one of them" but at the time all seem very plausible.

 

[Overachiever]

I might be wrong about this, but the issue isn't that we won't be able to accept new cards with old technology. Rather, the retailer will be responsible for disputes. In other words, VISA and Mastercard won't eat them and investigate as they do now. We, retailers, will be responsible and VISA/MC will just charge back the amount plus a "fine" to us for being non-compliant. It seems to me the bad guys will figure this out quickly and we will see many more disputes that we will have to eat.

I just can't seem to think this is no big deal so I need someone to talk me off the ledge.

My take away was to not really worry about it.

I think the liability of a customer using a counterfeit card would be the only thing that transfers over to us. When I sat in the cryptopay round table session they said the odds were about 1 in 300,000 that fall into this category based off the transactions that cryptopay has processed.

They also mentioned that the chip in the card won't work well or at all in wet environments and I didn't fact check this or anything but the guy from etowah valley told me if you were using the chip you'd have to leave your card in the reader while you wash in a self service bay, which would suck for customer trust and for the customer to remember to take it out after washing.

 

[cap732000]

Ahhhhh yes overachiever! That's was part of what was explained to me I couldn't remember! Agree looks kinda minor to me at this point as we'll .

 

[Earl Weiss]

My take away was to not really worry about it.

I think the liability of a customer using a counterfeit card would be the only thing that transfers over to us. When I sat in the cryptopay round table session they said the odds were about 1 in 300,000 that fall into this category based off the transactions that cryptopay has processed.

.

I would say the 300k figure is either BS or for some reason I am way above that at the Gas Station. Keep in mind the SS wash may get 1-2 Thousand CC Swipes a month, and a gas station may be double that. About 10 times a year I get a chargeback claiming fraudulent card use and asking for a signed receipt which of course you don't have if they "Pay at the Pump" .

Often the customer claims the card was stolen or unauthorized use. Out of that 10 I may have signed slips for 2. The other 8 I have to eat at perhaps $50.00 a pop. Usualy the chargeback is 2-3 Months after the card was used. Recently I had one where I had the signed slip and the cardholder still disputed it and they said I would have to pay $200.00 to go to arbitration.

So, bottom line is the Card issuers already have PIN technology in place. Requiring it for all transactions would virtualy eliminate the fraud but since they can stick it to the merchant why should they?

Further, some geniuses decided requiring entry of the billing zip code was a safeguard, when most people probably have the card billed to their home which address which is likely on something else in the lost or stolen wallet. That makes sense because...???
If you say because they can stick it to the merchant - You win!

 

[OM_2015]

Keep in mind the SS wash may get 1-2 Thousand CC Swipes a month, and a gas station may be double that.!

Our SS carwash doesn't support signatures, PIN or zip code requirements with Cryptopay.

Our full service locations use a different merchant provider and Ingenico terminals. Newer chip cards WILL NOT SWIPE in the existing terminals at all. Fortunately, our merchant provider with the full service washes is going to upgrade our terminals at no cost. The new terminals will have both a mag reader and a chip reader.

They also mentioned that the chip in the card won't work well or at all in wet environments and I didn't fact check this or anything but the guy from etowah valley told me if you were using the chip you'd have to leave your card in the reader while you wash in a self service bay, which would suck for customer trust and for the customer to remember to take it out after washing.

Did they provide any evidence of this? It does not sound accurate.

 

[Overachiever]

Did they provide any evidence of this? It does not sound accurate.

Nope, no evidence. But if you feel like asking Cryptopay/Etowah Valley about it, let us know what you find out.

 

[OM_2015]

Nope, no evidence. But if you feel like asking Cryptopay/Etowah Valley about it, let us know what you find out.

Hm; okay. I sent an email to Cryptopay just asking what their plan was for October 1. I'm certainly interested to see what they say as well.

 

[Robert2181]

Why would anyone not wait or upgrade to a new chip reader?????? One bad bad swipe with the card fees(free,1.9 etc) It seems to me the upgrade should be discounted for the costumers they have.!!!!!!!


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[soapy]

As a SS operator if I keep my old CCreaders I have a 1 in 300,000 chance of taking a stolen card at some point. Lets say I am unlucky and I actually take one in the next 5 years. I will have to stand the loss of $5 or $10 one time. I could prevent this by upgrading all of my readers ( 20 units ) at a cost of $300 each? So all I would have to do to save $10 is to spend $6000 to upgrade the readers.

 

[JustClean]

They also mentioned that the chip in the card won't work well or at all in wet environments and I didn't fact check this or anything but the guy from etowah valley told me if you were using the chip you'd have to leave your card in the reader while you wash in a self service bay, which would suck for customer trust and for the customer to remember to take it out after washing.

In Australia you have the choice between the mag reader, chip and NFC. I still have the mag reader but that will be changed soon. My machine is not compliant anymore. I inquired with Cryptopay but they can't (won't) deliver so I am looking at this http://www.nayax.com/en/vending-solutions/cashless-vending at the moment. It looks quite future proof since you could eventually also pay with an NFC phone, I guess.

And I don't believe that your card has to be in the slot until they are finished washing. Why should it be like that? You don't permanently swipe until you are finished washing

 

[MEP001]

My new card has a chip in it - it works with swipe everywhere except WalMart where I have to insert it and leave it in while it processes the transaction, which takes about 10 seconds. I think it will end up working the same way in self-serve.

 

[chip@laurel]

My personal VISA card was expiring so I assumed for sure I would get the new one with the chip but I guess Chase United Mileage Plus has not deemed it necessary yet since the card came and it is mag stripe only. Maybe they will make the switch and send one before this one expires in mid 2018?

 

[Dcalhoun]

Often the customer claims the card was stolen or unauthorized use. Out of that 10 I may have signed slips for 2. The other 8 I have to eat at perhaps $50.00 a pop. Usualy the chargeback is 2-3 Months after the card was used. Recently I had one where I had the signed slip and the cardholder still disputed it and they said I would have to pay $200.00 to go to arbitration.

So, bottom line is the Card issuers already have PIN technology in place. Requiring it for all transactions would virtualy eliminate the fraud but since they can stick it to the merchant why should they?

This is exactly what concerns me. Today, we have the power of VISA/MC fraud units to help protect us. However, the game changes after the CC companies impose upon us the requirement we have chip technology in order for them to protect us. The bad guys will soon figure this out and word will spread making us more susceptible to fraud.

 

[Earl Weiss]

This is exactly what concerns me. Today, we have the power of VISA/MC fraud units to help protect us. .

Sorry, but I disagree. The Fraud units protect the cardholder and Visa / MC. Not the merchant. As an aside , recently I had a fraud claim and In response to their request I sent a batch report showing it was pay at the pump. Purportedly this will have them hold in my favor but that is what I thought would happen of I sent a signed receipt and in such cases they always held in my favor until recently.