Recently, The Home Depot Inc. filed an antitrust lawsuit against Visa and MasterCard. It contends that the card brands colluded to prevent adoption of new chip-based cards requiring consumers to authorize transactions by entering personal identification numbers (PIN). In adopting EMV chip cards, Visa pushed for a signature authorization while MasterCard and the other brands advocated PIN authorizations. The Visa approach to processing card payments prevailed.Read More
Tags: Credit Card
A survey of 2.42 million merchants found that only 27% of them expect to be EMV-ready on October 1.
That's not what regulators and the industry expected -- especially because, on October 1, merchants without the new technology will become liable for credit card fraud.Read More
According to the latest fraud study done by LexisNexis, brick-and-mortar merchants have have seen a 25% spike in fraudulent credit card purchases in the past twelve months alone.Read More
On October 1 merchants who can't accept the new EMV chip-embedded credit cards will become liable for credit card fraud occurring at their business.Read More
Does it ever seem like corporations and the government come up with acronyms just to confuse you?Read More
Customers and prospects ask us all the time what exactly is going on with credit cards.
And no wonder as we approach NADA 2015 this week at the Moscone Center in San Francisco, California.
There is a lot of misinformation out there. For example, here are three breathless quotes from a well-known stock picking subscription service:
“Due to recent changes in credit card liability, all merchants in America are now required to update their in-store credit card readers to a more secure standard referred to as EMV. Any merchant who does not comply will be liable for credit card fraud. They have until October 2015. So, in less than one year’s time, nearly every merchant in the US will have upgraded to these new readers.”
“Every merchant in America is sure to have legions of shoppers demanding that they accept mobile payments. Get ready for an all-out NFC frenzy!
“With Apple getting on-board, mobile payments are now cool!”
The typical car dealer processes a lot of payments every day. Between the F&I office, the cashier, the service desk, the parts counter, and perhaps a leasing or rental desk, a lot of money changes hands.
Before electronic ticket capture for credit cards (swiping the magnetic stripe in a card reader), here’s how it worked:
The cashier put the credit card into a big, heavy device called an imprinter, or more commonly, for obvious reasons, a “knuckle-buster.” Then she inserted a five-part form and slid the imprinter over the card, which would imprint the raised lettering from the front of the card on the forms via carbon paper.
Car dealerships looking to keep their competitive edge have a new idea contending for their attention: accepting credit cards for down payments or even for full payment.