Sub Visual

RESOURCES & SUPPORT

STAFF CONTACT

Monika Zuluaga

Vice President, Membership & Marketing

401-223-1120, ext. 116

Monika@rihospitality.org

Dale's Corner

This blog is written by Dale J. Venturini, President/CEO of RI Hospitality Association (RIHA) and RI Hospitality Education Foundation (RIHEF). Its purpose is to engage RIHA members with current issues and trends.

By Dale Venturini, President and CEO, R.I Hospitality Association 


Many of us currently have an EMV credit or debit card – also known as a ‘chip’ card. These safer versions of the traditional magnetic-strip cards were designed to protect consumers against fraud. Long used in Europe, EMV – which stands for Europay, Mastercard and Visa (the three companies to spearhead the effort) – offers advanced levels of technology, including encryption to help prevent against having credit card numbers skimmed, accessed or duplicated into a counterfeit card.

The United States has the dubious title of having the most credit card fraud occurrences. According to Barclays, in 2015, the U.S. was responsible for 47 percent of the world’s credit card fraud.

The new chip cards, the process of which most of us find to be longer and more cumbersome, are prevalently used in the retail industry. However, that could all be changing. In fall of 2015, the major credit card companies pushed an EMV mandate in which most merchants in the U.S. would need to shift to an EMV-compatible transaction system. If not in compliance, businesses could be subject to non-compliance fees and, more worrisome, merchants who don’t comply will also be responsible for the costs associated with accepting fraudulent transactions or ‘chargebacks.’ Previously, the fraud was usually absorbed by the bank that issued the credit card.

The rollout has been moving forward, but not without its challenges. According to a study by the National Retail Federation and Forrester, ‘The State of Retail Payments 2016’ found that 76 percent of retailers surveyed cited EMV as their top payment challenge of 2015. Eighty-six percent of those surveyed have implemented or expect to implement the EMV system by the end of this year. But, while many retailers are working to complete the EMV transition, payment vendors have not been able to keep up with the demand to certify EMV equipment once installed.

Buying with Credit CardWhile most credit card fraud occurs at retail locations, we are starting to see a rise in the hospitality industry. The instances of consumers using fraudulent or stolen credit cards have resulted locally in thousands of dollars of chargebacks occurring to some restaurant locations that have not installed a chip reader. The hospitality industry has been a slow adapter to EMV, but the National Restaurant Association (NRA) believes that each business needs to evaluate certain criteria before undertaking the expense of an EMV-compliant system.

According to the NRA, many restaurants have difficulty justifying the expense to convert to this new technology and have issued some helpful facts for businesses to consider:

  • There’s no legal or regulatory requirement for merchants to install EMV readers. The card brands have simply modified their contracts to penalize those merchants who chose not to implement the technology – and the penalties happen only if a merchant is defrauded through the use of counterfeit or stolen cards.
  • EMV may be a fix for a problem you don’t have. Counterfeit cards have primarily been a problem for high-end retailers, electronic stores and other retailers. Typically, carders and other criminals haven’t targeted restaurants. If you haven’t had a big problem, you may not need to make a change
  • To evaluate your potential liability, look at how many, if any, of your chargebacks are due to the use of counterfeit or stolen cards. If the numbers are low, it may be hard to justify the cost of EMV-enabled terminals. Even if you experience fraud, the cost of the chargeback may be far less than the cost of installing a new EMV reader, or fleet of readers. As you look at the expense of buying and installing EMV readers, consider whether you’re better off investing in new technology that offers stronger protections, such as encryption and tokenization.
  • As you upgrade your POS system, make sure the new system incorporates not only EMV technology, but also encryption and tokenization technologies. The NRA considers these technologies far more important for restaurants than EMV. Encryption technology immediately encrypts card data as it’s entered into the POS system, so it’s unintelligible even if it gets stolen. Tokenization replaces stored card data with “tokens.” These tokens are unusable by hackers and have no value.

As more and more consumers begin using chip cards, this issue will continue to be a hot-button topic for our industry. If you would like to know more about EMV technology and compliance, please visit the NRA’s website at www.restaurant.org. For any local questions, please visit www.rihospitality.org or call us at 401.223.1120.


Dale J. Venturini is the President and CEO of the RI Hospitality Association. A veteran of more than 25 years in the hospitality industry, Venturini is considered by many to be the voice of the industry in the state of Rhode Island. She has been instrumental in improving the industry’s educational and training programs in the state, as well as enhancing the bottom line of the business she represents. Venturini splits her time between the office and the State House, a constant presence for her membership.



Views :
6756
Registered Date :
2016.10.04
07:30:17
Trackback :
https://www.rihospitality.org/riha/Dales_Corner/6549/46a/trackback
Article URL :
https://www.rihospitality.org/riha/6549
List of Articles
No. Subject Author Date
39 ‘Tis the Season of Giving Managing GroupMonika Sep 20, 2018
Hope everyone had a wonderful summer filled with rest, relaxation and rejuvenation and is now raring to go! We are fully in the season of giving – no, not the holidays – but, an even more stressful time of the year, the political season. Now...  
38 That’s a Legislative Wrap! file Managing GroupMonika Aug 16, 2018
After a marathon session of debates and a flurry of votes, Rhode Island’s General Assembly has adjourned for the summer. With hundreds of bills in the mix, the RI Hospitality Association (RIHA) spent countless hours carefully monitoring each...  
37 Summer in New England: Be a Tourist in Your Own Backyard file Managing GroupMonika Jul 05, 2018
When many of us think about summer vacations, we think about jumping on a plane and traveling to a far-off destination. However, for those of us who are fortunate enough to live in New England, there’s no need to venture too far to enjoy som...  
36 Our Next Generation of Culinary Stars: Cooking and Planning Their Hearts Out file Managing GroupMonika Jun 11, 2018
Recently, Providence, RI hosted the National ProStart® Invitational (NPSI), the country’s premier secondary-school competition focused on restaurant management and culinary arts. We had some wonderful judges visit from all over the nation as...  
35 Swimming Down “STREAM” Managing GroupMonika May 15, 2018
Education is truly the foundation of success no matter what career path you choose. Some learning is done in traditional classrooms, and more practical experience is gained in the thick of it in a restaurant or hotel kitchen, lodging establi...  
34 The #MeToo Movement is More than a Hashtag file Managing GroupMonika Mar 02, 2018
While the #MeToo movement has become synonymous with the entertainment industry, its reach is far deeper than the bright lights and golden statues of Hollywood. From politics, to business, to manufacturing, to hospitality, the potential for ...  
33 “We are made of star-stuff. Our bodies are made of star-stuff. There are pieces of star within us all.” file Managing GroupMonika Jan 02, 2018
“We are made of star-stuff. Our bodies are made of star-stuff. There are pieces of star within us all.” – Carl Sagan There is no greater honor for me each year then to be part of our industry’s largest celebration! Each November, I look forw...  
32 Paid Sick Leave Passes RI Legislature file Managing GroupMonika Oct 10, 2017
In September, both the Rhode Island House and Senate passed legislation that will require companies to give employees paid sick leave. Although the RI Hospitality Association (RIHA) is generally opposed to mandates that impact the employer-e...  
31 When did ‘Entry Level’ become Negative? file Managing GroupMonika Sep 19, 2017
If there is one theme that has dominated the political landscape in Rhode Island for the last decade, it is without a doubt jobs and the economy. Though we have seen a rise in the local economy since the recession, talk of job creation still...  
30 Taking the High Road – the Road Less Traveled file Managing GroupMonika Jul 24, 2017
Normal 0 false false false EN-US KO AR-SA Dale J. Venturini President/CEO, RI Hospitality Association It is increasingly difficult to take the high road in today’s poli...  
29 Paid Sick Leave – it’s Nothing to Sneeze at Managing GroupRIHA May 08, 2017
In Rhode Island and across the nation, we’ve seen a host of legislation introduced by out-of-state special interest groups that have squarely targeted the hospitality industry. From eliminating the federal tipped wage, to raising minimum wag...  
28 Buying Local for the Holidays Managing GroupMonika Nov 15, 2016
The holiday season is fast approaching…from a retail perspective, it seems to come earlier and earlier each year. While I was shopping for Halloween candy this year, I was sidestepping Christmas trees, holiday decorations and specialty choco...  
» The Cost of ‘Chip’ Cards and Protecting Against Fraud Managing GroupMonika Oct 04, 2016
By Dale Venturini, President and CEO, R.I Hospitality Association  Many of us currently have an EMV credit or debit card – also known as a ‘chip’ card. These safer versions of the traditional magnetic-strip cards were designed to prot...  
26 Gluten is Not Free in Restaurants file Managing GroupMonika Sep 01, 2016
Dale J. Venturini President/CEO, RI Hospitality Association We all know people who struggle with food allergies. From peanut butter, to shellfish, to strawberries, to dairy, the idea of dining out when one has a food allergy can be an ...  
25 Managing a Better Future file Managing GroupMonika Jun 30, 2016
The hospitality industry is a continuously growing segment of the U.S. economic picture. This year alone, the restaurant industry is expected to realize $783 billion in sales and employ 14.4 million in good-paying jobs, according to the N...  
24 Partnerships – They’re Not Always the Obvious Choice file Managing GroupMonika Jun 06, 2016
Dale J. Venturini President/CEO, RI Hospitality Association I’ve written extensively about the need to collaborate with organizations that share the same business interests. Whether a business partner’s mission is within your organizat...  
23 How Important is a Proactive Crisis Plan? Your Business Could Depend on it. Managing GroupMonika May 05, 2016
Dale J. Venturini President/CEO, RI Hospitality Association   With the spate of negative media headlines surrounding restaurants that have experienced foodborne or human-contact illness, it is critically important that every eatin...  
22 Where Have the Teens Gone? file Managing GroupMonika Apr 04, 2016
Dale J. Venturini President/CEO, RI Hospitality Association It used to be that almost every teenager had a job in the hospitality industry. With flexible hours and class-friendly scheduling, our industry was the perfect landing spot for h...  
21 The Real Cost of Foodborne Illness file Managing GroupMonika Feb 02, 2016
Dale J. Venturini President/CEO, RI Hospitality Association Our food supply system, while infinitely safer and better regulated than most other parts of the world, still has its challenges. We’ve all seen the headlines and recalls from E....  
20 “Shoot for the moon and if you miss you will still be among the stars.” file Managing GroupMonika Dec 30, 2015
“Shoot for the moon and if you miss you will still be among the stars.” – Les Brown Dale J. Venturini President/CEO, RI Hospitality Association  As we close out another year and ring in 2016, I have been fortunate to once again cele...