Credit Card Security & Fraud Prevention

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Recently, Matthews Consulting attended a seminar sponsored by Wells Fargo on credit card security, fraud prevention and PCI compliance.

In case there are any retail merchants out there who are unaware, the credit card industry made a major policy change that went into effect on October 1, 2015.

This major change is called “Liability Shift” and it can directly affect your financial position. Prior to October 1, 2015, if your company experienced any fraudulent credit card transactions VISA, MASTER CARD & DISCOVER etc. took the hit. Now it will be the retail merchant who bares the responsibility, and risk.

PCI (Payment Card Industry) Compliance has always been a challenge to maintain especially for small business but now, even if you are PCI Compliant and you have fraudulent credit card transactions, the financial loss will be on the retail merchant.

There is a solution and it is call EMV (Europay, Mastercard, Visa), which indicates that the credit card companies have issued their cards with microchip installed technology. If the retail merchant is using EMV processing equipment and there is fraudulent activity, they are no longer on the hook.

There is no deadline by the credit card industry for implementation of EMV technology, but there are guidelines. Some banks have and some have not started issuing these types of card. Some credit cards have the chip and some debit cards have the chip, it’s up to the financial institution.

As with all technology we know that there is more in the pipeline coming at us so it is likely that EMV technology will become the requirement. The decision to make is now or later. For your company, cash flow may dictate later, but financial loss may make it sooner.

It boils down to investing in the EMV card readers. The good news is they work on all card types so you won’t lose business from a customer with a magnetic strip type card and if you do have any fraudulent credit card transactions it won’t come out of your pocket.

Microsoft has kept GP technology up to date with current credit card processing standards and PCI compliance. There are more than one 3rd party solution for credit card processing that fully integrate with GP and are also fully compliant. Nodus Credit Card Advantage is one solution we have worked with extensively and we recommend.

Another topic covered at the seminar was check fraud. Stories of check fraud are rampant; we have all probably heard a few. Up to 82% of check fraud starts with a check payment type.

To minimize this risk, Dynamics GP has a module that all of our clients can benefit from and many already own. GP SafePay electronically submits a check register report to your bank each time a check is issued in GP. The check register information the bank receives, must match the amount and check number of the check when it is cashed. Sending this information in real time prevents the would-be thief from cashing the check before the bank has a chance to receive the actual check data for verification. In addition to preventing phony checks from being cashed, it also prevents the manipulation of check amounts on valid checks.

The SafePay module set up in GP is straightforward and easy to do. It requires some testing with your bank to get the file format and transmission method set up.

Our main take-away from Wells Fargo’s conference is that scammers are rapidly improving the technology they use and the strategies they apply are constantly changing. It’s not a matter of “if” your business is going to deal with these issues, but how and when. However, there are safeguards we can utilize and they are already available if you prefer to be proactive.

To hear more about credit card processing through Dynamics GP or GP SafePay give us a call at (408) 438-3600 or shoot us an email at

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