3 Reasons Every Restaurant POS Should Be Inte

By Antasha Durbin, TouchBistro

May 31, 2017

Technology is rapidly changing how restaurants operate — from mobile iPad point of sale systems to online ordering — no facet of the industry is untouched, including how payments are processed.

Europay, Mastercard and Visa, better known as “EMV” is still fairly new in the U.S., but it’s the global standard for how chip-based credit and debit card transactions are processed and for good reason — the transactions are more secure.

Here are three reasons why every restaurant POS should be integrated with an EMV solution:

Reduced Chargebacks

Imagine this scenario: a group of diners go into a restaurant and rack up a $300 tab. One of the customers hands his chip card to the server to close it out. Even though the card has a chip on it, the restaurant’s point of sale isn’t integrated with an EMV processing solution so it’s swiped rather than dipped. The receipt is then brought back to the customer which he signs. The next day, the cardholder calls into his bank and disputes the charge saying he was never at that restaurant.

Credit card fraud rates have doubled over the past several years and more than half of them occur in the states. Scenarios such as the one above are becoming all too frequent in restaurants and hurt restaurant profitability. And without an EMV reader, the restaurant is on the hook for card disputes rather than the bank or cardholder meaning more chargebacks.

Increased Security

Only nine percent of transactions in America are paid with cash, meaning the majority of business is done using debit and credit cards.

Point of sale systems that are integrated with EMV processing solutions are able to protect restaurants and cardholders because unlike magnetic stripe cards that can be replicated over and over again since the data the cards contain doesn’t change, each time a chip card is dipped into an EMV reader it creates a unique one-time-only transaction code that can’t be used again.

So when chip cards are used in person, they’re extremely secure and restaurants can accept them without worrying about whether or not the person paying is the card owner.

Future Compliance Requirements

As banks continue to move away from the easily-replicated, magnetic stripe cards in favor of safer and more secure chip cards, it will become a requirement for all businesses accepting card payments to be EMV compliant.

This change has already started — in October of 2015, EMV liability shifted from banks to POS companies and credit card processing companies. Meaning restaurants using outdated technology that doesn’t support EMV-enabled equipment are responsible for fraudulent charges.

Rather than waiting until the magnetic stripes officially become extinct or losing money due to an influx of chargebacks, more and more restaurants are opting to protect their bottom lines and customers by switching to point of sale solutions that are EMV-enabled.

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