Is your business PCI compliant? Avoid fines for breaches!

Major breaches like TJMaxx and Target have been widely publicized in the past, but breaches at smaller businesses have received very little attention. This is mainly because information about these smaller occurrences have been very hard to come by due to two reasons.

First, not all states have disclosure laws requiring merchants to disclose breaches and secondly, card associations are not required to disclose individual cases.

According to a Wall Street Journal article, most breaches come from small businesses who are not up to date with technology or compliance laws. Here are some of the article highlights:

• More than 80% of the credit card breaches have occurred at small businesses.
• Visa levied $3.3 million in fines for non compliance against small businesses in just one year.
• MasterCard did not disclose their fines.
• Any business that accepts credit cards must agree to be PCI complaint.

Take for example the case study of Lodi Beer, a microbrewery and restaurant in California who unknowingly stored 11,728 credit card records in their point of sale system. (Track data from the credit card's magnetic strip cannot be stored according to PCI standards). When that data was breached, Visa and MasterCard fined Abanco, the restaurant's merchant account provider, $27,000. Abanco then in turn passed that fine onto the restaurant. In addition to the fines, this merchant has spent over $50,000 in remediation costs, legal fees, upgrades, etc. That is a huge amount of money for a small business. Had they been up to date with their technology, this situation could have been avoided.

Here are some interesting facts that you should know about PCI compliance standards:

• Visa, MasterCard and the other card brands have put the responsibility  of maintaining compliance status on the processor or merchant account provider. They've successfully done this with a policy of making them responsible for paying fines when breaches occur.
• While these processors are responsible for fines, they will almost always pass whatever they're fined onto the merchant.
• If merchants are ultimately responsible for the fines, it is their responsibility to maintain PCI standards and stay up to date with their technology.

IES would love to help you become compliant. Give us a call at 781-816-9437 or check us out online at iesAdvisors.com.

Less than 1 month until EMV kicks in...is your business ready?

If you are a business owner, you should have heard by now that the United States is transitioning to full adoption of EMV chip enabled cards to reduce credit card fraud. The change is coming October 1, 2015.

How could EMV affect your business?
Today, if businesses swipe a counterfeit or stolen card, the bank assumes the loss. To encourage businesses to adopt the more secure technology of EMV chip cards, a liability shift is going into effect on October 1, 2015, where card issuers plan on shifting that loss to merchants.

What do I need to do?
Your credit card processing company should have contacted you by now to inform you of the changes and schedule new equipment to be delivered. (If they have not, you may want to call them). Depending on the company you use, that equipment may or may not come with a charge.

Do I need to switch all my equipment to EMV technology?
This scenario is most likely for small business owners who are being forced to pay for new equipment. It's just a matter of risk measurement...Consider the amount of your typical sale - are your customers buying a $10 pizza or a $500 laptop? Do you personally know most of your customers? What percentage of your customers use credit cards?

Will it be illegal to run a credit card without using EMV technology?
No, it will not be illegal to run a credit card using a typical mag card reader; just be aware that in the case of a charge back or fraudulent use, your business will be forced to take the loss not the bank.

If your business is facing challenges with EMV, give IES a call at 781-816-9437. We can answer your questions and help streamline the change, should you choose to upgrade.

This amazing new piece of technology provides secure & easy access to all your credit and ATM cards.

Coin is a connected device that can hold and behave like the cards you already carry. It works with your debit cards, credit cards, gift cards, loyalty cards and membership cards. Instead of carrying several cards you carry one Coin.

You can use a Coin everywhere cards are accepted including dip-style card readers and ATMs. Use a Coin just like you use your cards now at gas stations, restaurants, the mall, the gym, or other places you frequent.

The convenience and security seems to be worth it for only $100 (or $50 on a preorder at OnlyCoin.com).

Source: YouTube, OnlyCoin.com

Paying with a credit card is so 2012. Welcome to 2013, where you can pay with your face!

You don't need your wallet if you shop at certain stores testing a new PayPal app that's prompting buzz. You instead can pay with your face and your phone.

Basically, it works this way: You download the PayPal app, which shows a list of participating stores. Upon entering a store, just check in on your phone by using a four-digit PIN. Done shopping? A clerk will see your photo and first name on his or her phone or tablet and click on your picture to charge your PayPal account.

"We very much see this as the future of money. By 2016, you'll be able to leave your wallet at home," Rob Harper, PayPal's London-based head of retail services, told The Telegraph in a video report. It's backed by the same security that PayPal has for online purchases, Harper told the BBC, so if the company thinks something looks suspicious, it will take steps.

It's getting buzz for being tested at a dozen merchants on the outskirts of London, such as Noble Jones fashion clothing store, where owner George Absi finds the system "quite useful. You can make payment anywhere in the store. You don't have to bring the customer the bill," he said in a promotional video.

A UK-based PayPal spokesperson told MSN News "it is already available in the US," but we're unclear where, so we're trying to get details. (From what we can tell so far, it looks like a different PayPal mobile-payment system in the U.S. is offered at two dozen chains and typically works as it does at The Home Depot — you pay with PayPal at the cash register by typing in a mobile number and PIN or by swiping a PayPal payment card and entering a PIN, according to PayPal's website.)

Could this cashless, credit-cardless advancement tested in Britain one day improve your life? Depends on how much hassle you consider cash and credit cards to be. Ubergizmo puts it in a snarky way:

"If you’re lucky enough to have your popular retailer accept PayPal while you’re checking out in the store, then you know what a slight hassle it can be to have to input your password or passcode, which can add seconds to your entire transaction, and as a result, can turn your life completely upside down. That’s why PayPal is testing out a new method of verifying its users by using a photo of them as verification."

Source: MSN