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

By Janice Mackler

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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

 

Run Item-By-Item Sales Mix Report on Your POS System

By David Scott Peters

www.therestaurantexpert.com

Item-by-item shows you dollar-for-dollar. If you have a POS system then you have the ability to run an item-by-item sales mix report. And this report is a great tool to help you figure out your real food cost. How? Your food cost is determined by how much of each menu item you sell, not just the total cost of each menu item. If you sell more higher-cost menu items, you’re going to have a higher food cost. But if you can sell a few lower-cost menu items, you can balance your food cost out a bit. So knowing your mix is essential for knowing your true food cost.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

Don’t Ignore Sexual Harassment Training – The Restaurant Expert

By David Scott Peters

www.therestaurantexpert.com

Sexual harassment isn’t an “if,” but a “when.” EEOC Guidelines state that employers MUST provide anti-sexual harassment training. To cover your liabilities, you MUST provide anti-sexual harassment training. The restaurant industry is full of opportunities for sexual harassment. Don’t leave anyone in your restaurant left open to that situation, nor yourself open to that vulnerability.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

Look for Ascending Dollars in Your Bank Account with a Descending Dollar Report

By David Scott Peters

www.therestaurantexpert.com

One of the best ways to make sure you’re stretching every dollar is to order a descending dollar report. You can get this from your vendor. It shows what you spent the most money on down to the least amount of money. This isn’t necessarily in volume, but in price per item. It’s not that I ordered 10 cases, it’s that I spent $1,000 — which could have been 1 case. Based on these figures, you can try to find like or better products at cheaper prices, which can have a huge impact on your business and your bank account.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

Know Your Breakeven Point

By David Scott Peters

www.therestaurantexpert.com

Find your breakeven point to avoid breaking the bank.

Do you know your breakeven point? I bet your accountant does. And you should, too. Breakeven analysis is used to determine exactly that: how much in sales the restaurant must generate to break even. Knowing your breakeven point doesn’t tell you when you’ll make money or be profitable, but it can tell you if you can afford that new marketing idea, payments on a new range, or to hire that additional server. Through examination of your fixed and variable expenses, you can see the impact of changes in these expenses.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

No Free-Range Delivery Drivers

By David Scott Peters

www.therestaurantexpert.com

You shouldn’t have an open-door policy for your back door. Several days a week you receive deliveries and with those deliveries come drivers who have access to your restaurant and everything in it. We tend to trust them since they work for our vendors or distributors, but you shouldn’t. Implement a policy that keeps anyone not employed by you at the back door and always supervised by whoever is responsible for checking in deliveries.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

Test ‘Em Before They Hit the Floor

By David Scott Peters

www.therestaurantexpert.com

You can tell someone how to do something until you’re blue in the face, but how do you know they were really listening unless you ask? An essential part of any training program is the test that comes after you teach. Don’t let your new employees interact with your customers or your food until you test their knowledge. After completing the training program, every new employee must pass a test before hitting the floor. If they don’t pass the test, start the training over again.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

You Can Make Writing the Schedule Easy and Efficient

By David Scott Peters

www.therestaurantexpert.com

For each area of the restaurant, implement a master schedule, which tells you who you have on staff for each position, what days they can work, what shift(s) they can work on those days and what their preferences are on any given day. It keeps all the special requests straight, keeps seniority in the right order and allows you to map out your most important shifts with your strongest staff members. With master schedule, anyone can write any positions schedules.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

Have Two FTEs More than You Need to Cover Your Shifts

By David Scott Peters

www.therestaurantexpert.com

The trick to covering your shifts (and your butt) is having two FTEs (full-time equivalents) more than you need. To achieve this, you can either have extra people on your schedule or cross train your staff.  It gives you flexibility in writing the schedule and allows you to hire the right person when it’s right instead of the first warm body that stands up straight in an interview. Hiring and firing and training are expensive parts of owning a business. When you do hire someone, you want it to be because you’re sure the right person for the job has walked in your door.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.

 

Establish Thorough Job Descriptions

By David Scott Peters

www.therestaurantexpert.com

If they don’t know what’s expected of them, how do they know if they’re succeeding?  Every employee deserves a job description. It provides clear expectations and gives them a guide for performing within to the best of their ability. Without a job description, how else do they know what they’re responsible for and where they can go to grow? A job description is also a no-fail way of conducting job performance evaluations. They go a long way in demonstrating to an employee whether they’re measuring up or not.

David Scott Peters TheRestaurantExpert (1)David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.