It’s a bit of a mind-boggling shame that when a new requirement is put upon businesses, the support in the overall system is lacking, leaving companies open to losses through no fault of their own.
I recently wrote about the status of hoteliers attempting to upgrade their point-of-sale systems to include new EMV chip credit card readers. I say attempt, as you might know, because the hotel industry overall is nowhere near where it should be in implementing the new technology. For many involved, it’s not their fault, making the consequences even more bothersome.
The deadline shifting any fraud liability over to commercial entities passed last year, and it would appear it has been a slow transition overall. It took months after the deadline for me to actually receive any chip-enabled cards to replace my older ones. I can’t tell you how many times I’ve gone to stores only to find they didn’t have the new readers installed or, if they are installed, they have a small sign attached to the reader asking customers to swipe their card because the new technology isn’t ready for use yet. It’s only been within the past month or so that I’ve been able to more consistently use the chip in my cards.
Conceptually speaking, it’s strange that something designed to make transactions safer should take so long to come about. In reality, it makes sense that the installation of new hardware and software at every convenient store, grocery store, movie theater, restaurant, hotel, etc., should take months, if not years, to be complete. With all of the logistical challenges in place, it’s disappointing that a liability deadline was placed upon businesses when the support structure wasn’t up to the job of helping businesses meet it.
If it isn’t already, installing EMV chip card readers should be high on every hotelier’s priority list. While it might not be possible at this point because of the lengthy certification process, a backlog of orders through the card reader manufacturers, working out the kinks with brands’ proprietary systems and/or some other reason, this is one tech advancement everyone needs to jump on. It benefits the guests as much as hoteliers.
Credit card fraud and data breaches are no joke. We’ve published a special report and countless stories dealing with data breaches and IT security. Last year saw a significant number of data breaches in the hotel industry, and 2016 isn’t too far behind. With all of the guest information—both personal and financial—at stake, data security must be on the forefront of hoteliers’ minds. During last year’s Hospitality Law Conference, it seemed about half of every session—if the panel was not entirely devoted to the subject—at least touched on data breaches and legal liabilities and protections. The attorneys in attendance said, half-jokingly, that any law student attending the conference should consider focusing their studies on data security.
As mentioned before, the liability deadline came and went a year ago. That means if you don’t have an EMV chip card reader at your properties, the burden to refund any fraudulent charges made on an EMV chip credit card falls on you. That also means guests could request a chargeback for completely legitimate charges made at your properties and the credit card companies and banks might back them up. Without the necessary equipment to fight against fraud, it’s your word against theirs, so you better be able to prove those charges are legit.
Hopefully, I’m not telling you anything you don’t already know, and you’ve either installed the new card readers or you’re on a waiting list and you’re calling every week (or day) to find out when you’re next up. If this is all news to you, well, it’s probably time to make some calls.
What have your experiences been with installing EMV chip card readers? Have you had to dispute a chargeback that was for a legitimate guest stay? You can reach me at bwroten@hotelnewsnow.com and at @HNN_Bryan.
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