EFT Processing

Soon you may be paying more for your EFT processing.

Perhaps you already know that October 1, 2011 was the effective date for the Durbin amendment to take effect.  This amendment is supposed to reduce your processing costs for debit cards.  That was indeed the plan, however since the banks have begun charging more fees and stopped supporting rewards programs when customers use their debit cards, the customers have begun using more credit cards with a much higher fee for processing.

Below is the simplest summary of the "Durbin Amendment" that can be found on the internet.

Rule #1 – Debit interchange fees are capped at 21 cents per card transaction, plus five basis points upon ticket amount, plus one cent for card issuers who have implemented fraud prevention procedures.

Rule #2 – Debit transactions must be able to be routed through two unaffiliated networks and merchants can designate preferred routing.

Previously implemented rules noted in the Amendment:

• Companies have the right to set a minimum amount ($10.00 or less) for which they will accept credit cards (not debit cards) as payment options.
• Merchants have the option to offer discounts for cash payments, but cannot favor one card over another.

http://www.paymentsnews.com/2011/06/federal-reserve-final-rules-on-durbin-amendment.html

http://www.durbininterchangeamendment.org/

Regulation II - Debit Card Interchange Fees and Routing [R-1404]
Comments

http://www.federalreserve.gov/generalinfo/foia/index.cfm?doc_id=R-1404&doc_ver=1&ShowAll=Yes

Rules summary

http://www.chargelogic.com/blog/tag/durbin-amendment/

PCI Update

PCI is always changing and it is the best practice for any merchant that accepts credit card to be vigilant in their efforts to become and stay PCI compliant.

Card brands and the PCI Council are comfortable with the Level 1 and 2 Merchants compliance level and are going to start focusing on Level 3 and 4 Merchants.  85% plus of all breaches are in level 4 Merchants. 

In 2010 60% of Losses were due to 3 areas:

·       Lost/Stolen Devices
·       Malicious attacks from third party
·       Theft from insider, employee/friend

It is important that you don’t fall under the misconception that you can be PCI by a simple step or that because you are a small store you don’t have to comply.  Below are answers to some PCI myths as well as some best practice tips:

1.     PCI applies to everyone who accepts payment cards even if it just one.
2.     Tokenization does not make you compliant.
3.     Using a compliant payment application will help facilitate PCI compliance but does not make you compliant.
4.     Using a third party payment process does not exclude you from becoming compliant.  The merchant needs to ensure the third party is compliant.  The Physical and Information Securities still apply.
5.     Even if you are a “Mom and Pop” you need to be PCI compliant. 85% of breaches are in Level 4 Merchants.
6.     Completing the PCI validation is a critical step to reduce the likelihood of a breach but it is only a periodic measurement.  Being constantly vigilant is vital. 

Merchant Best Practices
·       Buy and use only approved Pin Entry devices at the POS
·       Buy and use only PA-DSS validate payment software at the POS and web shopping cart
·       Do not store sensitive are holder data on PCs or on paper
·       Use Firewalls on Networks and PCs
·       Make sure wireless router is password protected and encrypted
·       Use strong passwords and change default passwords on hardware and software
·       Check Pin devices regularly to be sure there is no rogue software or skimming  devices installed
·       Create security polices and train your employees
·       Follow the PCI standard

The Magellan™ 1100i

The Magellan™ 1100i omnidirectional presentation scanner is a high performing and versatile data collection tool for a variety of applications.  It uses Datalogic Scanning’s latest digital imaging technology to provide intuitive and fast reading performance on 1D and 2D bar codes as well as supporting advanced features like image capture and EAS tag deactivation.  A revolutionary External Read Indicator (ERI) allows the Magellan 1100i reader to integrate with other third party RFID or EAS systems for a truly “future-proof” solution.  Datalogic’s Illumix™ intelligent illumination technology in the Magellan 1100i reader optimizes light levels to automatically capture images and read codes from mobile phones, PDAs, or computer display screens. Illumix technology also provides incredible motion tolerance, far beyond most other 2D scanning solutions, enabling both sweep and presentation scanning techniques.  The Magellan 1100i reader’s compact size makes it the ideal solution for space-constrained environments. 

With a precise reading area, it is perfect for hands-free or handheld scanning and helps reduce accidental misreads of items caused by stray laser scan lines - improving productivity and customer satisfaction.  Datalogic Scanning’s patented Green Spot good-read indicator improves user feedback by projecting a visual green spot onto bar codes just read.  The additional visual feedback makes it easy to use in noisy retail applications.  The Green Spot can also be used to target a single code from a group of codes or to position a single code inside the reading area.  A comprehensive multi-interface set and a powerful label-editing feature allows easy integration into existing or new host systems.  Magellan Value Added Features such as Diagnostics Reporting, Host Download, plus optional Productivity Index Reporting™ allow management to use data from the scanner to improve throughput and manage maintenance.  In addition, each scanner supports Remote Management Systems to streamline operations and ongoing support across an enterprise.

The Importance of Maintenance

As an Independent Grocer who is always looking to improve your business and cut costs it can be tempting to see  your annual maintenance expense on your POS system as unnecessary expense.  There are many third party service organizations trolling the market offering plans with a significant cost reduction.  You need to consider the reasons it is cheaper:  the technicians are not trained by the manufacturers therefore not as highly skilled; the quality of replacement parts are not equivalent; there will be a reduced service level and dedication to issue resolution.   Using these vendors can be a costly mistake.  So what value does maintenance have for you?  Below is a breakdown of the three types of maintenance offered by STCR:

1. Hardware maintenance:

·       Contract Management
·       Asset Management
·       Remote Diagnostics
·       Call Dispatch and Coordination
·       Call Tracking
·       Call Resolution

2. Software maintenance:

·       Access to software developer support
·       Entitled to software level upgrades

3. Remote Help Desk Support:

·       24x7x365 access via phone internet and email

·       Remote diagnostics
·       Call tracking
·       Call resolution
·       Remote program upgrades
·       Answering 'how to' questions
·       Software personalization changes
·       Some setup and configuration changes
·       Tax table updates
·       Backup verification
·       Disaster recovery
·       Incident reporting
·       Closed call automatic notification
·       Satisfaction follow up call backs
·       Online Help Desk access for to open new calls and review call history

As you see the list is extensive and the added benefit is the costs are fixed.  Without this coverage you run the risk of costly excessive down times and service bills on an as needed basis, upgrade software license fees, and all the other intangible costs of your system not performing properly.  Typical to most service organizations, resources are prioritized for maintenance clients.  Don't make the mistake and leave your business exposed to these unavoidable situations.  Protect your investment and know you are covered.  If you have any questions regarding STCR maintenance offerings speak to one of our knowledgeable Sale Representatives (607) 757-0181.