This text is especially for brick-and-mortar retailers, concerning the October 1, 2015 fraud-liability rule adjustments and deceptive gross sales techniques surrounding the adjustments.
The brand new guidelines are inflicting a excessive proportion of retail retailers to alter their card processing tools to keep away from legal responsibility for sure fraudulent transactions. Learn my February and March 2015 articles — “EMV Credit score Playing cards, Half 2: Level-of-sale Gadgets, Options” and “Comply with-up: EMV Credit score Playing cards and AmEx OptBlue” — in case you are not acquainted with EMV chip playing cards and the fraud legal responsibility change on October 1, 2015.
The rationale for this text is to alert retailers that the usage of EMV playing cards has produced some deceptive gross sales techniques that may hurt the retailers’ companies.
EMV bank cards.
Deceptive Gross sales Techniques for EMV Gear
1. Don’t signal a brand new settlement. You shouldn’t should signal a brand new settlement along with your current supplier to improve your tools to course of EMV chip playing cards.
In case your current supplier tells you to signal a brand new settlement to course of EMV chip playing cards, one thing else is probably going taking place aside from merely upgrading your tools and it’s most likely not in your greatest curiosity.
Retailers have not too long ago contacted me as a result of their current salespeople instructed them that they needed to signal a brand new settlement with a purpose to improve their tools to course of the brand new chip playing cards.
In a single particular case, the service provider didn’t perceive why he began receiving two statements every month after upgrading. One assertion had simply minimal month-to-month charges; the opposite had the complete processing element and prices.
What the retailers didn’t understand is that that they had unknowingly modified suppliers and within the course of modified their pricing and their phrases and situations. They have been receiving a press release with minimal charges from the unique supplier as a result of their salesperson by no means knowledgeable the unique supplier of the change.
What the retailers didn’t understand is that that they had unknowingly modified suppliers and within the course of modified their pricing and their phrases and situations.
Take into account that unbiased sale brokers usually promote for multiple supplier. They do that for a number of causes, primarily to not depend on a single supplier for his or her revenue.
Sadly, some salespeople attempt to make the most of representing multiple supplier by switching an current service provider to a different supplier they characterize, to acquire bonuses or different revenue from the second supplier. I’m assured that’s what this gross sales agent did on this occasion.
2. Don’t change suppliers. Most suppliers have very strict guidelines stopping gross sales brokers from switching retailers for private achieve.
Within the above instance, the gross sales agent didn’t inform the unique supplier as a result of, presumably, he violated his contract with the unique supplier. I do know a salesman that performed the supplier switching sport final 12 months and misplaced $150,000 in annual residuals when the supplier found it.
In case your salesperson adjustments your supplier with out you absolutely understanding it, the unique supplier would most likely prefer to know so it may possibly cope with the salesperson.
In case your salesperson adjustments your supplier with out you absolutely understanding it, the unique supplier would most likely prefer to know so it may possibly cope with the salesperson.
The problem of being deceptive to retailers isn’t restricted to small suppliers or gross sales brokers that characterize a number of corporations. A salesman from one of many largest banks within the nation not too long ago had a service provider signal a brand new contract — supposedly to make use of EMV chip card tools.
The salesperson positioned the service provider on a brand new pricing plan with out absolutely speaking the change. As soon as once more, the service provider began receiving two statements; its month-to-month processing prices additionally elevated.
3. Look ahead to salespeople posing as card-company workers. Watch out for telemarketers and salespeople posing as somebody from one of many card corporations.
I’ve had a lot of retailers inform me that they obtained cellphone calls from Visa telling them that their terminals are unlawful and so they should improve them. I’ve by no means heard of a Visa worker calling a service provider in that method. Furthermore, terminals that can’t course of EMV chip card knowledge aren’t unlawful. Definitely retailers ought to perceive the fraud legal responsibility shift that takes place on October 1, 2015 and the enterprise choice they have to make, as I described in my February and March articles.
4. By no means lease tools. Many salespeople are benefiting from retailers by leasing terminals and PIN pads for absurd quantities. I’ve spoken with retailers who’ve signed leases at $99 or extra monthly for as much as 4 years. These terminals and PIN pads value $200 to $300 to buy. If a salesman ever suggests leasing the tools, you’re chatting with the incorrect salesperson. Interval.
