What is an EMV Card?

Visa does a great job of explaining to the masses what an EMV card is, what it isn’t and what it means to consumers and merchants alike.   Click below and use the arrows on the left and right of your screen to see what this means to merchants and consumers when the EMV Liability Shift goes live October 1, 2015.

Have a look at the Visa Chip Business Toolkit

http://usa.visa.com/merchants/grow-your-business/payment-technologies/credit-card-chip/resources/merchant-toolkit/index.jsp?page=toc

Also be sure to read our post by our own Janice Mackler, “What is EMV and what does it mean to you as the Merchant?”

The Myth of Free POS

View the PDF

We recently had a call from a customer who is planning on opening a location in Virginia that will be a full service restaurant with a bar. They were inquiring about a POS system that would be able to handle both operations. They heard that some companies offer “free” Point of Sale equipment.

The customer referred us to one of these companies on the internet and we took the time to read about their offer carefully. In today’s world, anyone can post anything online and reader beware, but the interesting point of this particular Review site was that it stated they do the research so that “you don’t have to.” To their credit, they did state that the supposed Free POS systems were accompanied by long contracts and that the terms/conditions should be reviewed carefully. They listed the top 5 advantages as follows:

  1.  Low Upfront Costs
  2.  Simple to Setup
  3.  Overnight Replacement Part Shipping
  4.  Lifetime Warranty
  5.  They Don’t Make Money Unless You Make Money

I will be addressing each point shortly, but the bottom line is that there is no such thing as Free POS. They still make plenty of money even if you don’t.

RDS POS offers tailored Point of Sale solutions systems focused on Hospitality, Retail, Grocery, and Petroleum/C-Store. Customers demanding an honest single source for their POS solution come to RDS POS for the best in Service, Software, and Hardware.

Most of us have heard the phrase “There’s no such thing as a free lunch.” Or how about “if it sounds too good to be true then it probably is not true.” Then how is it that there are still advertisements claiming “Free POS?” Is it possible there is such a thing as free POS for your business? Here are some common (and mostly misleading) phrases we found when researching this topic:

“Upgrade your Business to Point of Sale FOR FREE”

“FREE POS System for Hospitality, Bar or Retail”

“Is a FREE POS in your budget?”

“A comprehensive FREE point-of-sale solution for your business!”

To better understand, let’s quickly look at the components and pricing of a POS system: 19475626_m
1  Hardware – This could include the POS touch screen, all-in-one touch pc or separate processor (computer), customer display, barcode scanners, cash register drawer, kitchen display, and thermal printers.
2. Software: It is defined as the specific program than runs the point of sale operations and does have a variety of features.
3. Credit Card Processing– you must use their services, no negotiating on rates or terms
4. Training–  all remote, no  local, qualified trainer with any experience
5. Service & Warranty– at their mercy, no qualified support for on-site, nor any night and weekend support

It is easy to understand that all the above components cost money. Some imagine that the revenue from credit card processing may be able to allow sellers of POS systems to offer the system for free. This is typically NOT true. The share of revenues the POS provider receives is way too little to cover the costs involved if you are to get a real system. So, how is it that you see advertisements for “free POS systems?”

We went searching and found the answers. Here is what we discovered when we tried to purchase a two station POS system for FREE for a restaurant from one of the nation’s leading advertisers of free POS:

  1. Basic Package: $60/month per station: Total: $120/month. Includes touch screen with receipt printer and cash drawer
  2. Optional Equipment: Total: $33/month. Includes remote printer (x2)
  3. There is a $250 per quarter maintenance. That is an extra $6,000 in the five year term.

Then we moved on to the fun part– THE FINE PRINT! Commonly, most business owners are so busy with setting up their business that they don’t read the pages of fine print and this is where you can come across surprises. We suggest that you spend the time to always read the fine print and ask questions. Here are a few interesting and frankly scary parts from it:

Terms: The monthly payment agreement is for 60 months and then it is automatically renewed for an additional 48 months if you don’t give them notice 60 days period to the termination of the first 60 months. Early termination fee is equal to the number of months remaining and the entire amount is due upon termination! So if after operating for 36 months, you want out, then you need to pay them 24 months’ worth of payments immediately.

Rate Hike: The POS seller can adjust the monthly service charges upon 30 days written notice. So at any point, they can raise the fees and you have to accept it.

Credit Card Processing: You have to maintain this service with them and pay any fees they like. There is NO OPTION! This is a huge unknown, and does not allow for any comparison in rates or costs. Count me OUT!

Equipment Ownership: They own the equipment and upon termination, you must return all the equipment in working condition.

The actual provider: Your POS provider is actually a bank. Don’t know if I want the bank to know everything about my transactions.  What does a bank know about POS?!?

We know it’s hard to believe, but feel free to read the entire contract yourself.
Cost of ownership: Basic Package + Optional Equipment + Tax
$120+$66= $186 x 60 months = $11,160
Plus 20 quarters of $250 = $6,000
Total: $17,106.00 (Depending on what State you are in, you may have to add applicable taxes to it.

This is the cost if they don’t decide to raise the monthly fee as they see fit and if you forget to cancel the term 60 days before the expiration, then you are stuck for another 48 months or $13,728. You still have to pay whatever they charge for Credit Card Processing and you still don’t own the EQUIPMENT and are at the mercy of the seller. And you are still stuck with low level service and support.

CONCLUSION:
When we tried to bring up this to them and asked “how is this free?” we were told that this is like a cell phone contract. I am no fan of mobile phone companies, but at least with the cell phone companies you own the phone at the end and they can’t just raise rates on you if you are in a contract.

Directly stated, it is not only dishonest, but also grossly deceitful. One must wonder, if this is how a relationship starts, how will the rest of it go? The only factor we are not certain about is the service they provide when you have the system. You are obligated, so you can be at their mercy. They may be wonderful service providers, but in business, trust is everything and if they are this way in the beginning, who knows. A POS System is an investment in your business just like your employees who need to be trustworthy.

SOLUTION:
If you want an honest and reliable POS solution provider, then contact RDS POS Systems. Our goal is to help you build your business instead of locking you into fine print. Your success directly reflects upon us and brings success to us.

Contact us today with any questions: POS is what we do!

by Garry Easterling

What is EMV and what does it mean to you as the Merchant?

By Janice Mackler

View the PDF

EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit cards (IC cards or “chip cards”) and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions. The EMV standard is moving the consumers to chip card technology. These new cards contain an integrated circuit containing payment related information protected by layers of security. The EMV standard allows for cardholder verification methods other than a PIN.

As a merchant there are three core areas of concern:

  1. Expand TIP – TIP will end the mandate for merchants to validate their compliance with the PCI Data Security Standard for any year where 75% of the merchant’s VIS transactions stem from chip-based terminals.
  2. Build Infrastructure – Chip acceptance will require service providers to be able to carry and process additional data that is included in chip transactions, including cryptographic messages that make each transaction unique.
  3. Shift Liability – Effective October 2015 the party, either the issuer or merchant, who does not support EMV, assumes liability for counterfeit card transactions.

EMV is not the silver bullet that can wholly insulate a merchant from the credit breaches common in the news today.  Credit card theft will continue, and merchants will still need to protect themselves. EMV transactions still send credit card data in clear text that hackers can use for credit card fraud.   Since creating fake cards is more difficult in the EMV environment, hackers will be more apt to perpetrate fraud in an on-line environment rather than in person. Therefore, your firewall is still extremely important for protecting your business.

Questions you need to be asking your POS provider?  Is your POS Hardware ready for EMV? Is your software version able to accept EMV transactions? Does your POS have enough memory to support the EMV peripheral devices for both contact and contactless acceptance?  Has your credit processor defined what is required of the POS system to communicate in the EMV standard?  Most POS providers will not have the code completed until 2016, as these requirements are still being defined.

What does this liability shift mean to you as a merchant? How many transactions are flagged as fraud in a given year?  What is the cost to the merchant for those transactions? We’ve heard many merchants say the liability shift is far less than the cost of immediately transitioning to EMV.

As your trusted POS advisor we want to ensure you are ready to successfully meet these new requirements.  Please call us to discuss your needs.

1.855.737.1500 | rdspos.com

 

RDS Takes Home Highest Award

RDS Payment Services Award Winning CompanyFor the second year in a row, Retail Data Systems was awarded the highest honor at WorldPay’s Annual Awards Dinner. RDS General Manager Jeff Barrett accepted the 2014 WorldPay Chairman’s Cup at a special presentation at the 755 Club at Turner Field, Home of the Atlanta Braves. This honor is awarded to the #1 Independent Sales Organization (ISO) with the largest volume of card processing transactions with WorldPay. This collaboration spans the restaurants, grocery, retail and convenience store industries.

Barrett had this to say about the award, “This signifies our customers’ validation of the end-to-end solution coupling POS payments with great deployment and support. WorldPay shares our commitment to providing excellent services to clients, and this benchmark could not have been accomplished without their dedication.”

Retail Data Systems appreciates this recognition by WorldPay as a result of this successful partnership.

Brian Podraza Named President by RDS/DSI

Omaha, NEBrian Podraza HeadshotRetail Data Systems/DSI has named Brian Podraza its new President. Podraza started with NCR Corporation in 1988 and accepted a sales position with RDS Wisconsin in 1991. He moved to the Chicago branch where he was later named General Manager. In 2008, he became the VP of Operations and helped successfully navigate the company through a difficult economy with record-breaking results.

“I am honored to have been chosen by the board to lead RDS into the next exciting era of the Company,” said Brian Podraza. “I’m proud of how focused and energized our people are right now. Going forward we will leverage our unique core strengths to help grow the company to the next level.”

Podraza replaces Bob Seider who is retiring with 35 years in the POS industry. “On behalf of the entire RDS team, we want to thank Bob Seider for his leadership and vision. In his 8 years as President, Bob has transformed our company to its current level of success. He leaves with the company’s best wishes.”

About Retail Data Systems
Retail Data Systems (www.rdspos.com) is the largest provider of Point of Sale hardware and software in North America. Founded in 1950, RDS now operates over 25 offices serving customers across the nation providing complete Point of Sale technology. Our team of over 400 professionals ensures our customers the best 24/7/365 service available. Our list of industry-leading POS hardware and software products provides a variety of solutions for companies large and small.

Media Contact:

Drew Clausen
812-372-2000
dclausen@rdspos.com
rdspos.com

Retail Data Systems Deploys the First Ever End to End Encryption and Tokenization with EMV Ready Devices on the NCR Aloha POS

Press Release

Retail Data Systems deploys the first ever in the world end to end encryption and tokenization with EMV ready devices on the NCR Aloha POS, using First Data Corporation’s security solution TransArmor.

Marietta, GA, September 4, 2014 – Retail Data Systems, the largest integrated POS integrator and reseller in the US who is also recognized as a Diamond Reseller globally for NCR Corporation, successfully deployed in production for the first time ever in the world TransArmor on NCR Aloha POS at RedRossa Napoli Pizza in Clive, IA, a concept owned and operated by WR Restaurant Hospitality, LLC out of Sioux Falls, South Dakota.

The Aloha POS solution is a leader in serving professional restaurant operators with a comprehensive suite of solutions, and integrations to third party providers which protect a customer’s investment.      Jeff Barrett, General Manager of Retail Data Systems Payment Services Division commented, “In this time of hyperbolic announcements regarding credit card data breaches, Retail Data Systems collaborated with NCR Corporation and First Data Corporation to deploy a solution that removes card data from the customer environment while at the same time reducing merchant liability, and further lowering PCI reporting effort requirements while introducing token technology that can increase sales and loyalty.”

Essentially TransArmor introduces the most powerful “end to end” security, utilizing a tamper proof connected terminal encryption device integrated through the Aloha POS, which collaborates with vault decryption technology at First Data, making the data of no use to fraudsters and hackers from the time of swipe, or EMV chip read, through authorization, and token issuance. Since the data is never exposed in the clear, reformatted and scraped from memory, or stored at the merchant, there is nothing to steal. This particularly deters the remote access breach attempts from organized crime groups across the globe.

Brian Podraza, President of Data Systems, Incorporated, the holding company for Retail Data Systems, stated, “Retail Data System’s value is bringing together technology solutions from multiple sources to end up with a compelling, operational, and supportable solution. TransArmor on the Aloha POS is exactly the kind of solution that brings value to our customers.” Paul Van Bockern, CEO of WR Restaurant Hospitality, LLC, commented that, “Our guest experience and comfort at RedRossa Napoli Pizza is of paramount importance. Assuring that their sensitive credit card data is secure means everything and is a natural extension of our hospitality.”

Retail Data Systems is the largest provider of Point Of Sale Hardware and Software, in North America. Founded in 1950, RDS now operates over 25 offices serving customers across the nation providing complete Point Of Sale technology. Our team of over 400 professionals assure our customers of the best 24/7/365 service available. Our list of industry leading POS hardware and software products provide a variety of solutions for companies large and small.

Web site: www.rdspos.com/alohatransarmor
Twitter: @rdspos
Facebook: https://www.facebook.com/pages/Retail-Data-Systems/110961558961606

LinkedIn:   https://www.linkedin.com/company/60695?trk=tyah&trkInfo=tarId%3A1409774417860%2Ctas%3Aretail%20data%20systems%2Cidx%3A1-1-1

News Media Contact

Jeff Barrett
General Manager

Retail Data Systems
phone: 678.279.8038   email: jbarrett@rdspos.com

Free Webinar with One of the Restaurant Industry’s Top Experts

LAST CHANCE TO SIGN UP!

Free webinar with one of the restaurant industry’s top experts

LIMITED SPACE AVAILABLE SIGN UP TODAY!


September 4th 2014 at 2:00 CST.

Menu Engineering for Top Profits

In this session learn how to design a restaurant David Scott Peters TheRestaurantExpert (1)menu that puts money in your pocket.  Always a hot topic — your menu is the single most important tool your restaurant has to make sales. David Scott Peters, founder of TheRestaurantExpert.com and session speaker, will discuss the components of a successful menu and showcase results other restaurant owners have achieved by implementing his tips for success. The session will include sample menus that have been re-engineered for top profits. Attendees will learn:

• The dos and don’ts of successful restaurant menus
• When to use fancy fonts and pictures and when not to
• How to analyze your numbers and use them to your advantage in the menu design process
• The one system you can’t live without if you’re going to successfully engineer your menu

 

Rhodes 101 Stop Convenience Stores Select Mobile Software Solution from NCR

Convenience chain enhances the customer experience by offering a mobile app for paying at the pump  

NCR Corporation, the global leader in consumer transaction technologies, announced  that Rhodes 101 Stops Convenience Stores have deployed NCR’s ConvenienceGo (C-Go) mobile shopping app to make fueling easier.  Rhodes 101 Stops operates 30 convenience stores across Southeast Missouri and Southern Illinois and is a subsidiary of PAJCO, Inc.

C-Go is NCR’s mobile shopping app which allows customers to initiate a fuel transaction, select the amount of gas they want and then pay with their smartphones.  The mobile app supports Rhodes 101 Stops’ brand image and colors.  C-Go eliminates the need for customers to carry another loyalty card since the C-Go app updates and stores each shopper’s loyalty information and shares that information with the fuel pump automatically.  Rhodes 101 Stops customers will receive special ‘rollback’ pricing at the pump and the option of an emailed or printed receipt when they use the application.

“With this launch of the mobile NCR solution, we are continuing our commitment to always provide the most innovative and exceptional customer experience,” says Keith Boeller, president of PAJCO, Inc. “Beyond the added convenience, we think our customers will be thrilled to see the price rollback at the pump and the platform allows us to create innovative marketing tactics going forward.”

“Convenience stores operate in arguably the most competitive retail environment,” says Eric Stecker, vice president and general manager, Petroleum and Convenience, NCR Retail. “By introducing the C-Go mobile payment app and features, Rhodes 101 Stops is not only offering a convenient way to pay for gas, but they also create a tighter bond with shoppers, leading to greater loyalty.”

The Rhodes 101 Stops C-Go installation is a collaborative effort between NCR Retail and Retail Data Systems, a NCR Premier Point-of-Sale dealer.  For more information about the benefits of NCR’s C-Go technology, click here.

Source: NCR Corporation

Not-so-happy meal: McDonald’s satisfaction lags

McDonald’s just can’t climb out of the customer-satisfaction cellar.

For the 20th year in a row, McDonald’s ranks dead last in customer satisfaction in a national survey of patrons of 12 major fast-food chains by the American Customer Satisfaction Index… (read more)

Source: USA Today

RDS Southeast GM Walt Davis Featured in Inc. Magazine Article

Retail Data Systems Southeast General Manager Walt Davis was featured in a recent Inc Magazine article on the future of mobile technology in the restaurant industry. Restaurants have taken advantage of mobile technology to gain a better understanding of their customers while improving the customer experience.  Learn more by reading the full article here.

http://www.inc.com/jill-krasny/the-ipad-will-take-your-order-now