Innovative Retail Technologies

JAN-FEB 2017

Innovative Retail Technologies (formerly Integrated Solutions For Retailers) is the premier source for innovative yet pragmatic technology solutions in the retail industry.

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As we head into year two of the great EMV migration, here's a look at where we've been — and where EMV will take us next. D epending on whose numbers you trust, it's estimated that some- where between 35 and 45 percent of merchants are now EMV- enabled. Visa and MasterCard report that some 50 percent of the cards issued in the U.S. are now chip cards. Steve Cole, senior product manager for security and fraud solutions at Vantiv, says the gen- eral retail, supermarket, and drugstore verticals are leading the charge. " These segments had the largest exposure to the card brands' counterfeit liability shift, as they sell goods like gift cards that are highly sought after by the criminal ele- ment," says Cole. Table-service restau- rants, he says, are still lagging behind due to a lack of pay-at-the-table traction in the U.S. " There is also a mistaken belief in the market that tip adjustments can't be made on EMV transactions. In general, this is not true," says Cole. "MasterCard does have a rule that adjustments can't be made on chip-and-PIN transactions, but they are the only brand that has this rule and all of the brands allow adjust- ments on chip-and-signature transac- tions." Jim Raftice, president of U.S. and Can- ada at EVO, says his company has seen tremendous reception to EMV implemen- tation across all market segments, with many small- to medium-sized businesses following the lead of the top tiers. He EMV: Much Done, Much More To Do agrees with Cole's assessment of the growth opportunity for EMV adoption in mobile and pay-at-the-table models. " These segments, which include restau- rants and other service-oriented busi- nesses, have unique customer engage- ment requirements that have made EMV especially complex for these merchants." Raftice says collaboration with Verifone and Dejavoo Systems has lead to the introduction of both stand-alone and semi-integrated solutions to ease EMV migration for these merchants, enabling them to facilitate more complex EMV workflows including post-authorization tip adjustment, and the opening and closing of bar tabs with EMV cards. No Time To Rest On EMV Laurels While chip cards and EMV terminals are still working their way into the market, significant deadlines loom. In April, Mas- terCard will extend its lost/stolen liability shift to contactless transactions, where merchants will be liable for the fraud if the contactless card or consumer device is PIN (personal identification number)-prefer- ring, but the merchant does not support PIN. This will apply to any merchant that accepts contactless transactions. Cole also notes that in October, the liability shift for AFDs (automated fuel dispensers) goes into force. "This shift will impact the more than 120,000 merchants who sell fuel," ex- BY MATT PILLAR There is also a mistaken belief in the [table-service restaurant] market that tip adjustments can't be made on EMV transactions. In general, this is not true. Steve Cole, senior product manager for security and fraud solutions, Vantiv What's Next 25 Jan-Feb 2017

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