How does P2PE affect business? In Part 2 of our interview with MBS store automation expert, Sales Manager Chris Bovi, we talk about chip technology, customer wait-times, liability and more.
Customers get restless if they have to wait too long. How do security innovations affect processing speed?
There is no loss of processing speed when it comes to swipe payment and digital wallet payments in the new payments environment with Vantiv.
Where you might see some slow-down is with chip cards. That’s not a function of Vantiv’s software or our systems configuration. That’s the nature of chip cards. The chip is actually interacting with the PIN-pad during the transaction and usually needs to stay in the reader until the end of the purchase. That process creates a longer-than-we’re-all-used-to processing time.
How does the chip slow-down affect business?
I would say on average the chip transactions I’ve experienced take about 15 seconds, which is much longer than swiping your card. Those 15 seconds aren’t a lot in the bigger scheme of life, but when you add that up, per register, per hour, per day, that creates some incredible overhead when you’re a large retailer, and you’re looking at processing metrics. Those 15 seconds add up to some huge man-hour calculations, even in the ‘smaller’ world of collegiate retail
Will chip technology improve?
Credit card companies recognize it’s an issue and something to address. I was recently at a Toshiba event, and they had someone there from Visa talking about their new Quick Chip initiative that’s supposed to shorten those processing times by allowing you to insert your card and then remove it before the transaction completes.
Based on this presentation, we believe our software and solution is compatible with Quick Chip so as that technology becomes more widely deployed, Vantiv and MBS will be able to take advantage of it. There’s only 35, 000 retailers on Quick Chip right now. So far, it’s a very modest deployment.
Why do college retailers need the security features MBS Systems offers?
If you’re a collegiate retailer, you have some core values. One of them is to service the student and to do so in any and all ways practical. To be a comprehensive service to the student, you have to be able to handle all these different credit card processing types, whether it’s chip or swipe or cell phone.
You also have a mission to protect your students. It’s incumbent upon the retailer to protect a customer’s data and there’s no better way to do that today than P2PE.
Last but not least, you have a responsibility to your campus to minimize and eliminate any and all liabilities. Credit cards are a liability. If you keep that information from ever being on the system, if you take your store and your campus out of the scope for PCI, then you reduce liability, reduce risk and save the campus money.
To read Part 1, click here.