ONE YEAR LATER: CHIP WITHOUT PIN

October 3, 2016

Since the October 2015 liability shift, EMV remains frustrating for retailers and confusing for consumers—not a good proposition leading up to the next liability shift in October 2017.

October 3, 2016

ALEXANDRIA, Va. – One year after the October 2015 liability shift took effect for retailers to accept Europay MasterCard Visa (EMV) chip cards inside the store, thousands of chip readers have yet to be activated. To make matters more frustrating, the next liability shift—for fuels dispensers—is one year away.

Convenience retailer investments in EMV are not preventing fraud because chip cards in the U.S. are not enabled for PIN authentication, which is the most effective way to combat fraud, ensuring the customer using the card is the owner of that card. In the United States, the convenience store industry processes 160 million transactions each day and invests billions to reduce fraud at the point of sale. For example, many retailers pay to use customers’ ZIP codes to verify a transaction to protect their customers and their business. Retailers have real incentives to eliminate payment card fraud because they, according to the Kansas City Federal Reserve, absorb 80% to 90% of all fraud losses on credit and debit card transactions.

Convenience retailers will spend more than $7 billion on EMV—or just under 70% of industry pre-tax income for 2015—to upgrade and replace software and equipment to accept chip cards, but the card companies prevent retailers from requiring the use of PINs to verify the cardholder and protect against fraud. Without the protection of a PIN number on transactions, consumers and retailers are vulnerable to fraud.

Leading up to the October 2015 deadline, the card networks were late providing the necessary software specifications to accept EMV transactions. Retailers then needed certification from each card network before they could activate EMV. There were bottlenecks for both, compounded by the fact that the card networks set a liability shift timeframe without regard to the ability of equipment manufacturers and software providers to actually meet the deadline—a problem that will undoubtedly turn out to be even worse at fuel dispensers.

Nearly a year ago, NACS Board member Jared Scheeler, managing director of The Hub Convenience Stores Inc., testified before Congress that his chain of four North Dakota convenience stores had spent roughly $134,500 to install POS and pump card readers that accept EMV chip transactions. At that time, NACS estimated that the average transition cost would be more than $26,000 per store, compared with an average profit of $47,000 per year.

Since the October 2015 EMV liability shift, many retailers have also been experiencing an outrageous increase in chargebacks, mostly erroneous. Counterfeit chargeback liability is unknown, and has not been divulged by Visa and MasterCard, despite industry efforts for clarification.

Last week the Merchant Advisory Group (MAG) sent a letter to Visa and MasterCard regarding ongoing challenges with the EMV transition for in-store deployments, and highlighted concerns regarding the feasibility of the payments industry being ready for the October 1, 2017, liability shift for fuel dispensers.

“Compounding the financial burden for small merchants is the liability shift already in place for in-store EMV transactions under which chargebacks have far exceeded expectations. And for larger retailers with many stores and multiple pumps at each location, the expense is staggering,” MAG wrote in the letter.

The NACS Show is just two weeks away, so if you want to learn everything you can about EMV, its hurdles and how to prepare for the next October 2017 liability shift, do not miss out on the education, guidance and discussions that will take place during the event.

Here’s how you can maximize your time at the NACS Show learning more about EMV:

  1. Participate in Technology Edge.
  2. Attend EMV-focused education sessions, such as “Are You Prepared for EMV?”
  3. Meet with vendors at the expo.
  4. Talk to members of Conexxus and industry experts at the Technology Edge Solutions Center.
  5. Talk to NACS government relations staff and general counsel in the NACSPAC Lounge.

On Capitol Hill, most of the efforts have so far focused on the aftermath of a data breach and notification requirements. NACS is urging policymakers to consider not only what happens after a data breach occurs, but also how to prevent breaches and fraud from happening in the first place. Protecting against fraud should be a top priority for all forms of payment, including mobile payments, and the best way to authenticate transactions is through a PIN or more advanced means.

NACS is advocating that retailers should have the option to require PIN on credit and debit card transactions and those that occur on a mobile device—the same protection banks require at ATMs.

PIN is the most secure authentication technology currently available and can be implemented now. All EMV chip-card readers are PIN-enabled with encryption security. When PIN is required, whether a card number or the card itself is stolen, a PIN protects consumers against fraud.

http://www.nacsonline.com/Media/Daily/Pages/ND1003161.aspx#.V_KCGvArK70

 

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11 Strategies for Market-Basket Growth

March 2, 2016

Opportunities abound in wine, chocolate and … newspapers?

Published in CSP Daily News

By Jennifer Bulat, Group Director of Editorial Production, CSP 18

DALLAS — Did you know that people buy chocolate with just about anything else in the store? That people have had $700 more in their accounts since last year? And that customers shop a convenience store in the evening the way they do a small grocery store?

In the session “Boosting the Convenience Market Basket” at CSP’s Convenience Retailing University, Don Burke, senior vice president of Management Science Associates Inc., Pittsburgh, analyzed data compiled from three convenience-store retailers and offered these tips:

  1. That $700 extra consumers have comes from lower gas prices. While in-store sales are up 3% as a result of customers spending less on fuel, “You have to work a little harder to get that money now,” Burke said.
  2. Revenue from fuel sales is down, but dollars from those sales aren’t down as much because people have been “buying up”—purchasing higher-octane gasoline instead of regular. However, 85% of fuel customers don’t buy anything in the store. How can you get them inside? With signage promoting the top in-store categories. (See No. 9.)
  3. Speaking of those categories, some of the fastest growing (in the latest 13 weeks of data vs. the same time a year ago) are wine (up 12%), beer (10%), cold vault/energy drinks (9%) and ice cream (8%). Many of these are up as a result of consumers wanting to treat themselves via the extra cash they have, Burke said.
  4. And more on wine: The “sweet spot” price for wine in the c-store is $8 to $12, and the wine market basket is $18.62 on average. However, Burke says some folks are willing to spend $24.99 for a good bottle. Make sure customers know you have high-quality items and some may bite. Even better: Many of those who purchase wine buy hard liquor with it, so make sure the displays are close together.
  5. Two other complementary liquids: water and carbonated soft drinks. “Always leverage and market your cold case together” for bundling opportunities, Burke said.
  6. Who knew? People tend to buy a newspaper when they buy a lottery ticket, according to MSA data. “If you want to sell more newspapers, put it near the lottery machine,” he said.
  7. Most beer is purchased between 3 and 11 p.m., usually when folks are on the way home from work. “Put a six-pack on your (checkout) countertop just to remind them,” Burke said.
  8. Total store sales peak between 4 and 5 p.m. And sales of milk spike in the later hours. “People shop c-stores in the evenings the same way they do a small grocery,” he said.
  9. In a market-basket analysis of the top categories, chocolate always pops up as something customers will buy with another product. Those fuel customers who don’t come into the store (see No. 2) might be lured inside by a promo on chocolate candy.
  10. Thirty-six percent of customers who buy beer make that their sole purchase. The category purchased second most often with beer? Family planning. Safety first!
  11. Finally, it’s not just hype: MSA numbers show stores that offer foodservice have 2% higher sales than those without. And when people purchase foodservice, they buy something else 82% of the time. 

 

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InsightRS Releases Fuel Manager

May 21, 2015

Call today for more information!

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Norm Rischbieter Named Dir. of Customer Services

July 24, 2012

Contact:
Tina Rischbieter, VP
Insight Retail Software
518-633-4111

-FOR IMMEDIATE RELEASE-

Insight Retail Software Names Norman Rischbieter as Director of Customer Services

CLIFTON PARK, N.Y.,   July 24, 2012 – Insight Retail Software [InsightRS] specializes in the development of backOffice™ Software for retailers in today’s C-Store, Petroleum and Specialty Retail Marketplaces. InsightRS serves the single store and multi-store locations with excellence.

Norman Rischbieter brings an extensive knowledge of back office software, ECR’s, point of sale peripherals, computer networking and years of industry experience to InsightRS.   Norm will be in charge of managing customer relations which will range from backOffice™ Software installs, customer training and customer Help Desk.

The expansion of our Customer Relations team will further strengthen our ability to meet the needs of our customers,” noted Timothy Rischbieter, President of InsightRS.  “Norm’s background in education, extensive knowledge and experience with the software and hardware offered by InsightRS, will greatly benefit our sales network and our clients”.

You will not find a guy that is more dedicated to solving problems or making customers happy, than Norm.”  Timothy Rischbieter, President

Norm joined InsightRS July 2012 and will represent the company at RSPA RetailNow 2012 in Las Vegas.

Norman and his wife Carolyn live in Trenton, SC.


Back Office Software for Verifone Ruby, Topaz or Sapphire

May 7, 2012

I have a few questions before suggesting a back office package for your C-Store.

  1. Does your C-Store use a Verifone Ruby or Sapphire?
  2. Do you want back office software but think it’s too expensive?
  3. Would you like to own your software instead of renting your software?
  4. Are you using Ruby Manager but want something better and more affordable?
  5. Would you like Pricebook and Reporting capabilities only?
  6. Would you like the option of starting with Pricebook and Reporting but would like to add Inventory at a later date?
  7. Would you like to have a single database but operate multiple stores without having to do Database Synchronization?
  8. Do you want 64 bit software for your 64 bit operating system for better performance?
  9.  Would you like to have great database performance and reliability with the latest Microsoft SQL Server 2012?
  10. Would you like to have your current pricebook file converted saving weeks of data entry – at NO ADDITIONAL CHARGE?

If you answered YES to any of these questions, we have good news for you.  backOffice™ Software from Insight Retail Software is the perfect fit with the perfect price.  It’s as easy as 1 – 2 – 3.  Give us a call today at 518-633-4111 x 1


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