Chargebacks on Credit Cards Happening NOW! #EMV

May 10, 2016

RETAILERS ON THE HOOK FOR COUNTERFEIT TRANSACTIONS

Chargebacks are on the rise following the October 2015 EMV liability shift, and convenience retailers are fighting back.
May 10, 2016

NEW YORK – Beginning with the October 2015 EMV liability shift, retailers that have not upgraded their payment terminals to accept EMV chip-card transactions are

on the hook

for counterfeit transactions, writes the Wall Street Journal, and this particular cost of fraudchargebacks—is adding up.

The news source reports that chargebacks among small and medium-size merchants increased 15% in Q4 of 2015 from a year earlier, according to a Strawhecker Group survey, adding that the volume of chargebacks has likely increased even more since then. Although the group didn’t put a dollar figure on the chargebacks, other experts put the total around the tens-of-millions of dollars mark.

Since the October 2015 EMV liability shift, many retailers are experiencing an outrageous increase in chargebacks that are mostly erroneous. Mike Lindberg, payment solutions manager at CHS Inc., commented during the Conexxus Annual Conference last week that some smaller retailers have reported a $10,000 to $15,000 increase in chargebacks per week, while larger retailers are experiencing $1 million in chargebacks per week.

I can’t imagine what will happen at the pump come October 2017,” Lindberg warned.

The No. 1 chargeback reason code since October 2015 is

merchandise not received,”

he said, which in theory makes no sense for the big box retailers. Some retailers are even seeing multiple chargebacks on the same credit card, and indicating that there is very little interest from card issuers or acquirers to help solve this costly problem.

Due diligence, however, can pay off. Convenience retailers experiencing a higher volume of chargebacks can successfully reverse the charges on challenge because convenience retailers aren’t within the October 2015 liability shift specification for type and applicability (i.e., the fuel dispenser).

“The banks will hopefully learn from the first October 2015 liability shift what is chargeable, because right now it’s a

‘charge it all back and see what gets challenged’

approach,” said Gray Taylor, executive director of Conexxus. He previously told NACS Daily that this approach to chargebacks “will have dire consequences for small to mid-size retailers, who can scarcely afford dedicated chargeback staff.”

NACS Online article found here

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MAKING PEOPLE SMILE in Seattle

March 28, 2016

A Chevron gas station in Seattle uses its sign to entertain customers, rather than inform.
March 28, 2016

​SEATTLE – Usually signs are in the business of letting potential—and current—customers know about sales, special events and other information related to the company. Most convenience stores use outdoor signage to highlight specials and products, but the Wallingford Chevron gasoline station and convenience store has taken a different tack: humor.

For more than a decade, this station’s sign has posted amusing sayings to the delight of customers and residents. The genesis of the humorous postings is traced back to when the owners replaced an auto repair shop with a convenience store. To get the word out about the change, the owners hit on the idea of entertaining signage, the News Republic reports.

Popular messages include:

  • Ban pre-shredded cheese—make America grate again.
  • If attacked by a mob of clowns, go for the juggler.
  • When it’s raining cats & dogs, don’t step in a poodle.
  • A clear conscience is the sign of a fuzzy memory.
  • Hold the door open for a clown. It’s a nice jester.
  • Ever stop to think and forget to start again?
  • The past, present & future walk into a bar. It was tense.
  • I child-proofed my house but the kids still get in.
  • If pride comes before a fall, humility should come by winter.
  • I checked into the hokey-pokey clinic & I turned myself around.

The station has a dedicated Facebook page for the Wallingford Sign with photos of its most popular ones.

Full article found here:

NACS online


CHIP CARD DELAY FRUSTRATES RETAILERS

March 24, 2016

Delays in POS equipment certification have many retailers frustrated and worried about huge spikes in chargebacks.

March 24, 2016

​NEW YORK – Avi Kaner, a co-owner of the Morton Williams supermarket chain in New York, has spent about $700,000 to update the payment terminals at his stores to accept EMV chip cards. However, he can’t turn them on, writes The New York Times, a bottleneck in offering a more secure payment process that is frustrating retailers—both large and small—across the United States.

Since the EMV liability shift took place on October 1, 2015, retailers have been essentially put on hold to get their payment terminals certified to accept chip cards.

The Times reports the cost of waiting is piling up. “It’s been very frustrating,” Kaner told the news source, noting that he purchased most of the upgraded POS equipment before the Oct. 1 deadline, and he’s still waiting for certification. The delay, he says, has cost him thousands of dollars in payments for fraudulent purchases. “There’s no recourse,” he said.

“The long delays are just the latest black eye for the deployment of the new systems,” writes the Times, noting that some consumers haven’t even received new credit and debit cards with the embedded EMV chip.

First Data, one of the largest payment processors, told the Times that about 20% of the four million American merchants it works with are in the process of being certified, a procedure than can take weeks to months.

Mallory Duncan, general counsel at the National Retail Federation, told the Times that the payments industry was unprepared to handle the flood of certification requests around the Oct. 1 liability shift deadline. “They didn’t allow for enough time or people to perform this certification,” he said. “Merchants have gotten slammed because they weren’t able to get certified, because the networks failed to provide the necessary resources to do that.”

Kaner commented that since Oct. 1, customers who have contested charges made with their EMV-enabled cards have been successful in reversing transactions, and he’s worried that some customers will use the Oct. 1 liability shift to get out of paying for legitimate purchases. Chargebacks, he said, have increased significantly. “It started out as a trickle, and now it’s turning into a flood,” he told the Times. “In the first couple months, it might have been a few hundred dollars a month. Now, it’s thousands a month.”

“The convenience and fuel channel has numerous retailers in the same situation, having invested upwards of $30,000 per site to be hardware-ready for EMV, only to be put on perpetual hold with approved software,” said Gray Taylor, executive director of Conexxus. “These retailers are trying to avoid the inevitable manufacturing and installation bottlenecks to do the right thing and get ahead of the curve, only to be on perpetual hold by an over-burdened vendor community trying to navigate late specifications and complex certifications. This is what happens when you simply choose a deadline, like the card brands did, without diligence. The premium retailers will pay for this ‘hurry up and wait’ situation and it will result in higher consumer prices.”

=====================================

Thanks NACS for this article. Retailers aren’t the only ones frustrated, resellers share equally in the frustration.

http://www.nacsonline.com/Media/Daily/Pages/ND0324161.aspx?utm_content=NACS%20Daily%20032416:%20newsarticle1%20(Chip%20Card%20Delay%20Frustrates%20Retailers)&utm_source=NACS%20Daily&utm_campaign=NACS%20Daily%20032416&utm_medium=email&utm_term=343490#.VvQaOOIrK70

 

 


Independent Grocers Taking Aim at C-stores

March 4, 2016

NGA Show session highlights how three grocers are going after convenience.

Insight Bullseye #doBetter.jpg

March 1, 2016, 03:07 pm By Joan Driggs, Stagnito Business Information

LAS VEGAS — Independent grocers have convenience stores on their radar.

An educational session at this week’s The 2016 NGA Show, hosted by the National Grocers Association (NGA), discussed the need for independent grocers to compete against convenience stores and provided some key takeaways on how to successfully do so.

Panelists representing leading independent grocers such as Niemann Foods, Buche Foods and Docs Food Stores pointed out that convenience stores are continually upping their food retailing game with more grab-and-go and fresh prepared items. Independent grocers need to stay competitive to remain the go-to destination for shoppers, whether they’re on a weekly fill-up trip or a quick stop on their way from work.

Nine-store chain Docs Food Stores, based in Bixby, Okla., has moved many convenience items to the front of its stores, including beverages and quick meals, according to speaker Courtney Brown, vice president and chief operating officer. The chain also added an express register to help customers make a quick purchase, he shared.

Additionally, Docs takes advantage of low-priced meal deals from its hot bar and utilizes outdoor seasonal displays — such as a farm-stand truck — to communicate that its stores have more to offer than traditional convenience stores.

Brown stressed that having enough staffing is critical because customers don’t want to wait in line ever, but especially when they’re on a quick trip, it could be a deal breaker.

RF Buche, president of Buche Foods, a South Dakota chain of grocery and convenience stores (some of which offer fuel) told NGA Show attendees that rethinking your basic grocery retail strategies is key to success. Appealing to convenience shoppers means putting yourself in their shoes — not just in terms of what assortment might appeal, but also the experience.

Clean bathrooms are not to be underestimated, he noted. Buche Foods brags that it cleans its restrooms seven times a day. The company has even hosted manager bathroom-decorating contests.

Niemann Foods, based in Quincy, Ill., has about 100 stores under its umbrella, including grocery, convenience, hardware and pet stores. Rich Niemann III, director of convenience operations, discussed the company’s recent evolution in its convenience business.

The company underwent an evaluation about five years ago to determine the best place to invest and reinvent. The result is Harvest Market, two convenience stores with a focus on fresh prepared foods.

Harvest Market features sandwiches, soups and other fresh items prepared daily; hot and cold fountain beverages; and self-serve Sweet Berry frozen yogurt and toppings.

Like Buche Foods, Harvest Market makes use of its fuel operations to drive customers into the store. “Consider that 60-70 percent of fuel customers might not go inside,” Niemann said.

The company makes use of extensive advertising at the fuel pumps to promote meal deals and other items that are typically not available at convenience stores. “Fresh really sets the tone,” he said, and helps the company bounce its convenience shoppers to grocery shoppers.

The 2016 NGA Show is taking place Feb. 28 through March 2 at Las Vegas’ Mirage Hotel & Casino. The annual event brings together independent retailers and wholesalers, food retail industry executives, food/consumer packaged goods manufacturers, and service providers for opportunities to learn, engage, share, network and innovate.

The National Grocers Association is the only industry association devoted exclusively to the needs of independent grocers.

By Joan Driggs, Stagnito Business Information
  • About Joan DriggsJoan Driggs is Editorial Director of Progressive Grocer and Progressive Grocer Independent. She has more than 25 years of experience in trade journalism and market research. Joan enjoys connecting with CPG manufacturers and grocery retailers, and learning how they connect for the benefit of consumers. Her roots are in new product development and she continues to seek out the latest in greatest at grocery retail. To connect with Joan, email jdriggs@stagnitomail.com, or reach out on Twitter, @JoanPGrocer.

– See more at: http://www.csnews.com/industry-news-and-trends/competitive-watch/independent-grocers-taking-aim-c-stores?cc=3#sthash.QglNprIZ.9oqakXrR.dpuf


What is EDI (Electronic Data Interchange)?

January 14, 2016

What is EDI? Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.

By moving from a paper-based exchange of business document to one that is electronic, businesses enjoy major benefits such as reduced cost, increased processing speed, reduced errors and improved relationships with business partners. Learn more about the benefits of EDI here. »

Each term in the definition is significant:

  • Computer-to-computer– EDI replaces postal mail, fax and email. While email is also an electronic approach, the documents exchanged via email must still be handled by people rather than computers. Having people involved slows down the processing of the documents and also introduces errors. Instead, EDI documents can flow straight through to the appropriate application on the receiver’s computer (e.g., the Order Management System) and processing can begin immediately. A typical manual process looks like this, with lots of paper and people involvement:
    Manual EDI (Electronic Data Interchange) Document Exchange
    The EDI process looks like this — no paper, no people involved:
    EDI (Electronic Data Interchange) Document Exchange
  • Business documents – These are any of the documents that are typically exchanged between businesses. The most common documents exchanged via EDI are purchase orders, invoices and advance ship notices. But there are many, many others such as bill of lading, customs documents, inventory documents, shipping status documents and payment documents.
  • Standard format– Because EDI documents must be processed by computers rather than humans, a standard format must be used so that the computer will be able to read and understand the documents. A standard format describes what each piece of information is and in what format (e.g., integer, decimal, mmddyy). Without a standard format, each company would send documents using its company-specific format and, much as an English-speaking person probably doesn’t understand Japanese, the receiver’s computer system doesn’t understand the company-specific format of the sender’s format.
    • There are several EDI standards in use today, including ANSI, EDIFACT, TRADACOMS and ebXML. And, for each standard there are many different versions, e.g., ANSI 5010 or EDIFACT version D12, Release A. When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version.
    • Businesses typically use an EDI translator – either as in-house software or via an EDI service provider – to translate the EDI format so the data can be used by their internal applications and thus enable straight through processing of documents.
  • Business partners – The exchange of EDI documents is typically between two different companies, referred to as business partners or trading partners. For example, Company A may buy goods from Company B. Company A sends orders to Company B. Company A and Company B are business partners.

Source credit:

What is EDI (Electronic Data Interchange)?

 


It’s Spring!

March 31, 2015

It’s Spring!  That means spring forward, change the batteries on the smoke detectors and BACKUP YOUR DATA.  Backing up your data is like flossing your teeth.  You don’t have to floss them all – just the ones you want to keep.

backup-backup


What is Instagram and how can it help my business?

June 18, 2014

instagramInstagram has been around since 2011 and started as a way to quickly snap a photo, use their cool editing filters and put those pics out in the unfiltered world.  Instagram allowed its users to post photos without having to send friend requests or worry about much of anything.  But then in 2012 Instagram was purchased by Facebook and the bar started to rise.  Suddenly there were more cool filters, video capabilities and sharing between Facebook and other Social Media sites became easier and people started to jump on the bandwagon.  The users grew from teenage girls and college kids to movie stars, sports teams, TV Shows and businesses.   On March 25, 2014 Instagram announced having more than 200 million active monthly users beating out Twitter in terms of number of mobile customers in the US.  They also shared the fact that Instagram had already surpassed the ’20 billion photos shared’ mark.  Instagram became a household name.

So what is Instagram?  Here’s what google says:

  • Instagram is an online mobile photo-sharing, video-sharing and social networking service that enables its users to take pictures and videos, apply digital filters to them, and share them on a variety of social networking services, such as Facebook, Twitter, Tumblr and Flickr

With 200 million users out there, how can it help my business?  Good question!

  1. Showcase your business, showcase your merchandise

Facebook has friends, groups and pages.  Instagram’s feed is unfiltered and can be seen by anyone.  People (or let’s say ‘Shoppers)’  have a plethora of content available from friends and businesses they follow, and chances are – they want to see what you have available for sale!   So, keep your smartphone close and snap often!  Remember this, snap now, edit later if you need to.  You would be amazed at how wonderful a quick photo can look on Instagram!  A great way to advertise a new product, a new shelf placement or just something fun.  Once you become a pro, you’ll be snapping and posting with no real interruption to your day.

2.  Showcase yourself!

Everyday photos are a huge hit on Instagram.  Snap a photo of an employee with a new or fun product.  Better yet, have your employees post a photo on their Instagram showing the store, various products  or a special event.  Use the many cool filter effects to turn a quick snap into something that looks professional.

3.  Take Instagram behind the scenes

Shoppers get a warm and fuzzy connection when they get a taste of what everyday life is for store owners and store employees.  Share a few photos of trade shows, your participation in charity events,  trips to market, a video of food parings, etc.  Do whatever is relative to your business.  Let the customer know who you are [with limits of course].

#4.  # Hashtags !

What are they and what is their purpose?  I’ll let Wikipedia have the honors:

A hashtag is a word or an unspaced phrase prefixed with the number sign (“#”). It is a form of metadata tag. Words in messages on microblogging and social networking services such as Twitter, Facebook, Google+ or Instagram may be tagged by putting “#” before them,[1] either as they appear in a sentence, (e.g., “New artists announced for #SXSW2014MusicFestival”)[2] or appended to it.

Hashtags make it possible to group such messages, since one can search for the hashtag and get the set of messages that contain it. A hashtag is only connected to a specific medium and can therefore not be linked and connected to pictures or messages from different platforms.

#anyquestions #thatWASlong #annoyed #didNOTreadthat

Create your own hashtags to interact with your customers using your store name, a catch phrase, a charity event or a product name.  Make it fun and take advantage of this opportunity to reach new customers while staying connected to your current customers.  A great way to promote sales, events, products.

Take advantage of the CAPTION section by directing shoppers to your website or Facebook page where more information can be found. Don’t forget the videos!  A quick video from a customer or a video walk around the store or product demonstration videos are all great marketing tools.  With one click your photo or video capture can be pushed to your Company Facebook Page.  This gives you double coverage for the same effort.

Instagram is a fun and easy way to promote your business!  Get started today!

Good luck!

last try eye


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