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Innovative Trends

New EMV Smart Card Terminals

The Basics

Visa and MasterCard have begun rolling out their new Europay, MasterCard and Visa (EMV) credit cards. These cards have a new smart chip located on the face of the card. These cards are also known in the industry as chip and pin cards. In April of 2013, Visa and MasterCard required all acquirers and processors to have a solution for merchants to be able to accept EMV cards. The complete switchover to these cards is expected to be mandated for October 2015. Other markets and countries have already made the switch in previous years, creating a more secure processing network, leaving the US as a vulnerable target. The US is actually way behind the curve on this technology. This has thus increased the amount of fraud that occurs to US consumers, prompting emphasis on the change now. The new mandate says that by the October 2015 deadline, any party who is responsible for a transaction made through a non-EMV capable terminal, that results in fraud, will be 100% liable. This is currently not the case for merchants. They have the ability to fight their case when fraud occurs and are not liable every time it happens. Being PCI compliant and up to date with PCI Security Standards education has a big hand in protecting merchants.

The switch to smart cards has led to the need for new terminals that can communicate with the chips in the cards. These EMV terminals can read the cards through a contactless reader or within the machine when the card is inserted like a traditional ATM transaction. The cards and machines use a sequence of encrypted exchanges to complete the transaction. All merchants will need an EMV capable machine within the very near future in order to read these new cards and be compliant with the 2015 mandate. The traditional swipe only machines will no longer be compliant with the PCI Security Standards adopted for merchants that accept credit cards.

Purchasing a New Terminal and the Necessity

There are several trains of thought on requiring merchants to purchase new terminals for the smart card rollout. Many find it unfair that they are forced to purchase these terminals when they have a terminal that works perfectly fine and may have even purchased a terminal recently. Here's how we see it at DynaPay. We understand that unnecessary expenses are a bad thing for all companies, but especially for startups and small business. Requiring an updated terminal is not an unnecessary request at certain times because it keeps your company safe. Hackers and criminals will continue to develop ways to commit fraud and it's important to keep your company and customer's data safe. Millions of dollars are spent behind the scenes each year in technology and research to keep merchants safe. It's not always recognized on a day to day basis when looking at your terminal in your storefront. Most people in America buy new cell phones every year to two years for leisure at the same cost and don't think twice about it. Credit card security is actually a preventive act that helps protect your company.

However; if you've purchased or leased a terminal recently, even as long ago as 2012 and it was not an EMV capable terminal, you are doing your processing with a dishonest company or sales associate. The only possible reason behind selling a new terminal to the merchant that wasn't EMV capable within the past two years is to be able to turn around and sell an EMV terminal to you for more profit a year or two down the road. If you leased a non-EMV terminal for an extended period of time, you are now stuck in the lease paying for a terminal that will put your company at risk. Some companies prey on merchants that aren't completely educated on credit card processing information. They give companies such as DynaPay and the industry a bad reputation. DynaPay does not practice these dishonest techniques and it may be time to check who you do business with if this is the case for you. Continued business with dishonest companies not only puts your wallet at risk it puts your company at risk.

Morea, Dov; Christiansen, Philip; Dragt, Bruce; Randolph, G. Russel. "EMV in the U.S.: Putting It into Perspective for Merchants and Financial Institutions." First Data Corporation. 2011. Web. 24 Jun. 2014. Retrieved From
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EMV Key Dates Chart. Verifone Systems, Inc. 2011 Web. 24 Jun. 2014. Retrieved From
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Cloud Based POS Systems

What They Bring to the Table

Point of Sale System (POS) technology has been trending toward cloud based systems that are run on common tablets and phones as opposed to the all in one computer systems of the past. This new movement has made it extremely cost effective and dynamic for the merchant to utilize a POS system for their ownership needs. No longer are the days where a $1000 or more system must be purchased with multiple accessories and installed leaving the merchant's business operations entangled within the POS system and no low cost efficient way out. The merchant is also often cornered into using a single high priced merchant service provider that can raise prices and add fees at will. These old systems came with high priced upfront payments and also service agreements that cost the merchants every time a change, upgrade or service issue arose. Fees had the potential to compound very easily and quickly dissolve the benefits of owning one of these systems.

The new cloud systems typically come with a monthly fee price structure to use them and the ability for the merchant to cancel at any point. Most of the new systems give the merchant the opportunity to freely choose their processor or at least come with several choice options giving some decision power to the merchant. This creates competition among processors, which in return creates fair startup offers to the merchants. Albeit there are some POS designers who make their systems proprietary to one credit card processor, but the fact remains that there are many more designers that do not.

Another positive to the new system is that the merchant is often given the option to use their own personal tablet as equipment. This gives them a cost effective way to put to use already owned equipment or to let them shop around and purchase one from the lowest priced electronic store nearby. As previously stated a huge drawback to the old systems was the high upfront startup fees that are now seemingly curbed in the new systems. Data and processing for the system can also be viewed and accessed from the merchant's smart phone from anywhere you have service. This provides limitless functionality to business owners to track data when they are off site.

The cloud based system concept now gives the owner the ability to switch their POS system if the situation arises. There is no large sunk cost upfront if the merchant doesn't like their system. POS designers are now forced to continually update and upgrade their systems to compete with one another for business. This creates benefits to the merchants who are now receiving top of the line products on the cutting edge of technology. The merchants can easily update the POS systems as they are built in app form. This gets the newest versions to the merchant quick and easily. Should the merchant change systems entirely, most cloud system providers can take an exported excel sheet with inventory categories and amounts and easily incorporate them into the new system. This eliminates a start from scratch situation and will save the business owner valuable time during the conversion period. No longer will you the merchant have a reason to put up with a service or product that you are unhappy with.

DynaPay offers the ability to utilize these new cloud based terminals. We have our one that we provide and are compatible with many more on the market. We will help you the merchant with any ordering or setup that is needed to get your business operations flowing again. It is important to us that you aren't losing out on business because you are spending time on the phone with inept tech support. It's also important that you do your research into the system you are going to use whether you are with DynaPay or not, a switch to a new system that is incompatible with your current or new processor can hinder the startup of your new POS system. Too often, merchants are sold on a product before thorough research is completed. Sales are too often made without your best financial and functional interests in mind. We welcome opportunities to consult with you while you are choosing the right POS system.

Belicove, Mikal. "The Benefits of Cloud-Based Point-of-Sale Systems." Entreprenuer 3 Jan. 2013. Web. 18 Jun. 2014.


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