Warning Issued To Merchants With Eftpos Terminals

Media release

Warning issued to merchants with eftpos terminals

Merchants around the country are facing compulsory upgrades to their eftpos terminals, in a bid to reduce the cost of fraud to credit card companies and banks.

And Viaduct, New Zealand's leading independent eftpos dealer, is warning merchants against wasting money on terminals that won't be compatible with other changes that are in the pipeline.

From next January it will be mandatory for the majority of merchants to have terminals that are compliant with two new technologies - chip cards (EMV standard) and enhanced security for eftpos transactions (3DES). From then, banks will have the right to shut any non-compliant businesses off the network and the merchant carries the risk of fraudulent transactions.

Viaduct Director Marty Pomeroy says the January changes come at a time when the industry is also facing other pending changes such as the switching of the networks. This includes the move to an IP network where the terminals will be able to utilise the business internet connection rather than tying up a phone line.

"This is an exciting change for merchants as it provides some real benefits for them in reducing the need for additional phone lines."

Another development has real interest for those in the tourism industry, as it allows travellers to pay for goods or services in their local currency and provides an additional revenue stream to the merchant, as the currency exchange is done at the time of the transaction, he says. This software has been developed by most of the banks on specific eftpos terminals and means merchants should be aware of future proofing their needs when choosing the terminal they use for meeting the EMV / 3DES compliancy requirements

"Businesses have no choice but to make the change. However they do have a choice in how they approach this. The reality is that merchants will also be facing other changes in the not so distant future, so we are encouraging all businesses to look at the options that will future-proof their terminals.

"It's good economic sense and a good use of resources to make the change once, rather than having to go through a similar process down the track."

Mr Pomeroy says the introduction of chip technology in New Zealand, follows a global trend in a bid to curb the growing problem of card fraud.

He says the deadline for making the switch is only six months away and he is urging merchants to get prepared now, rather than wait until the last minute.

"Merchants do not want to find themselves in the position of not meeting the deadline and running the very real risk of being disconnected. It's a busy time leading up to January and we strongly urge merchants to have it up and running before the deadline."

People accepting electronic payment also need to be up to speed with the new technology, which is already in use internationally, he says.

"We have heard of cases where merchants in New Zealand are not sure what to do when faced with a card carrying chip technology. The last thing they want to do is see a sale walk out the door because they don't know how to accept the payment."

He says Viaduct is well placed to offer advice and to look at the individual needs of each merchant, and as it is an independent dealer its clients have access to a variety of solutions.

Mr Pomeroy, along with business partner Mark Unwin, opened the doors of the Wellington-based business three years ago. It now boasts clients around the country, specialising in small to medium businesses, with its turnover jumping 200% year on year and being awarded The Telecom Premium Dealer of the year.

ENDS

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