By now, most retailers have shifted to using EMV, or chip-based credit card processing. The main reason for implementing the change was to limit fraudulent charges. The information stored on the chip is harder to duplicate than the magnetic stripe on the back of a credit card.
Old Methods of Validating Transactions
Before EMV, signature capture was the one method stores could use to validate that a customer came in and authorized the transaction. It was the only option to fight chargebacks.
New Methods of Validating and Protecting Transactions
Since EMV processing, shifts the liability from the retailer, signatures are no longer required when a customer disputes a charge. If the retailer processed the transaction with using the cards chip, and the transaction was fraudulent, the credit card processor is liable, not the business. In addition to the chip, there have been other technological advances to limit fraud:
- Biometrics – Face or fingerprint validation when using digital wallets like Apple Pay or Google Wallet
- Tokenization – During processing, the full card number is tokenized so that it cannot be read at any point during transmission to the credit card process for authorization
- PCI Validated Point to Point Encryption – Counterpoint can support Bluefin Point-to-Point Encryption for the Ingenico payment terminals
What is required to turn off signature capture?
1. Counterpoint Version 8.5.4.1 or above
What are your next steps?
1. Check with your Merchant Processing Vendor to see if they still require signatures – they may still want the signature in case of a potential fraudulent charge.
2. Contact i3 Verticals Point of Sale and speak to the Sales or Support team to understand if you need a Counterpoint service pack or upgrade
Sources:
https://usa.visa.com/dam/VCOM/global/support-legal/documents/visa-nosigflyer-us-can-040518.pdf
https://money.cnn.com/2018/04/13/pf/credit-card-signature/index.html
