This fall we saw some major announcements regarding changes in the way future POS credit card transactions were going to be processed. In October, MasterCard announced it would no longer require signatures at point-of-sale transactions in the U.S. and Canada beginning in April 2018. Shortly thereafter, Discover announced similar intentions, requiring no POS signatures, expanding this initiative to not only the U.S. and Canada, but also Mexico and the Caribbean. Not to be left behind, AmEx announced in early December it would also implement this change in April 2018 on a global scale. At this time, VISA is the lone holdout, still requiring signatures at point-of-sale. Odds are the antiquated signature requirement will be dropped by Visa soon considering that it is difficult to prove that the signature was indeed the cardholder’s.
It's not a surprise that this has come about, as we have seen money exchange hands in an increasing variety of ways. Online shopping of course, but also mobile banking capabilities where you can do everything from schedule monthly bill pay to open a loan application from your phone, P2P payments using a service such as PayPal, Google Wallet, Venmo, and emerging blockchain technologies. The requirement for signatures has been bypassed for these types of transactions because of the ability for banks to authenticate transactions in a variety of ways, enhanced algorithms to suggest potential fraud, and other security measures already in place, both by the credit card companies and the merchants themselves.
Part of the rationale to forego signatures is to provide an easier and more streamlined transaction process, creating happier customers, and a more unified payment experience across all merchants and payment networks. Some consumers worry, however, without this added layer of fraud protection, their accounts could be more at risk. Consumers and merchants alike should keep in mind there are stringent guidelines that must be adhered to when accepting a credit card payment.
Merchants who accept credit/debit cards for payment are required to become compliant with thePayment Card Industry Data Security Standards (PCI DSS). PCI DSS are a set of mandated guidelines that provide merchants with rules for physical, application and network security, as well as security policy management, which is required of all merchants. Merchants have the responsibility of safeguarding consumer data, and adhering to these PCI requirements or face stiff fines and penalties. They also do not want to lose customers by allowing their information to be compromised. With signature-less purchasing around the corner, merchants should consider new solutions to help meet these requirements and securely manage customer data. Solupay’s ControlScan's PCI 1-2-3 compliance solution offers this assistance, by providing merchants with the leading tools and support necessary to analyze, remediate and validate PCI compliance.
Though there is the potential for fraud with nearly any transaction, gone are the days of verifying the matching signature on the back of your card. Here to stay are innovative ways to conduct business and process transactions. Look for a solution to help you integrate these new capabilities, while keeping it simple and seamless, and allowing you to focus more on your business. Contact Solupay, Netsuite's 2017 Innovator of the Year, today to explore a new standard or SuitePayments processing solution for you and your business.