Currently, payment methods in commercial establishments are led by transactions made with cards, apart from facilitating and increasing sales, they can also become a great threat in the face of potential fraud.
This is why businesses must have an efficient Point of Sale (POS) System that protects information and provides peace of mind to both merchants and customers. There’s a wide variety of POS Systems in the market; in this blog, we will mention the characteristics they must have to protect your business from fraud.
• Comply with Security regulations: A secure POS system must comply with the PCI DSS payment card data security standard-Payment Card Industry Data Security Standard. Thi is in reference to a security scheme designed to ensure the protection of card information during transactions and storage (such as numbers and associated data). This standard was established by the most important credit and debit card companies, in order to have a unique design that allows them to protect data and prevent fraud.
• Have data encryption: Data encryption gives information reliability. This is how it works: Debit and/or credit card information is transmitted from the point of sale to the payment processor using encrypted data to guard against unauthorized interception.
• EMV Technology: POS systems must be compatible with EMV embedded chip technology, so they can generate unique codes for each transaction, protecting customers and the business from false transactions and potential cloning. EMV obeys the initials: Europay, MasterCard and Visa, the three companies that developed this technology.
• Additional Authentication: POS systems may require additional authentication, such as a PIN or electronic signature, to authorize transactions. This layer of security prevents unauthorized use of stolen cards and ensures that the official cardholder is involved in the process.
• Updating, Monitoring, and Suspicious Detection: An advanced POS system can detect suspicious activity, such as unusual transactions and large purchases. These systems can generate real-time alerts.
• Trained personnel: The personnel working in the commercial establishment must be trained in the management of the POS and in fraud detection techniques.
What are the most frequent card frauds to which establishments and customers are exposed?
Skimming: Refers to the theft of card information used at the time of the transaction, its purpose lies in reproducing or cloning the credit or debit card. How? Attackers can install skimming devices on a POS and thus steal customers' card details when they swipe to pay.
Card cloning: Information from legitimate cards is obtained using skimming devices in ATMs or payment systems.
Malware in POS: Cyber attackers can infect POS with malware, with the purpose of capturing card information at the time of transactions.
Online Fraud: When a card is stolen or cloned, it can be used to buy online, without the need to present an identity document.
Emails or false messages: Be careful with the messages that arrive in your mailbox or messages on your cell phone asking for personal or card information, pretending to be from your financial institution.
Pharming: This technique is used by cyber attackers, who redirect users to fake websites to steal card information.
Communications Interception: Attackers could intercept communication between the POS and the merchant's central system, thus capturing card data.
Card theft and identity theft: A person can steal and impersonate the card owner's identity.
POS Security Flaw: If the POS software or hardware is not properly secured, there could be vulnerabilities that attackers could exploit.
Employee fault: Merchant employees may engage in fraudulent activity by tampering with POS payments or misusing card information.
📖 For other types of fraud and how a good POS can help, check these blog entries:
Have you ever wondered what the process of payment card transactions is like?
Every time a card transaction is made at a commercial establishment, there are features and steps that allow purchases to be processed quickly and securely. The customer does not know what this process is like, but the merchant must be clear about how the system works after swiping the card through the reader, so that the purchase can be approved.
There are four key aspects:
• The trader.
• The client.
• The bank that provides the merchant's processing services.
• The bank that issued the customer's credit or debit card.
How is the process carried out?
Next, we will briefly summarize what the process is like and what key pieces are involved.
• Beginning of the transaction: The customer delivers their debit and/or credit card to the merchant in order to purchase a product. The merchant must introduce the card through the card reader, which will depend on the technology used: it can be sliding the band, inserting the chip or bringing the card closer for contactless payment methods, such as NFC.
• Card information: The card reader obtains the information to authenticate the transaction. What type of info? Card number, expiration date and security code (CVV).
• Authorization: This step involves the customer, the merchant, and the issuer (card bank). The establishment's system sends the transaction information, amount, card number, among other details, to the corresponding payment network (Visa, Mastercard), which then communicates with the bank that issued the customer's card. In this process, the issuing bank certifies whether there are sufficient funds to approve the transaction.
• Approval or denial: The issuing bank sends the response to the commercial establishment through its payment network, confirming whether the transaction has been approved or denied. If it has been approved, an authorization number is created and registered.
• Receipt: A receipt is delivered to the client, printed or sent by email, with the establishment's information, the amount paid, and the authorization number.
Remember that the personal data of customers is essential to be protected, this guarantees their trust. See the MasterCard example.
Universum’s Point of Sale Systems.
Our POS is designed with a complete security system that protects your company and your customer’s data, integrating perfectly with devices that optimize transaction functions while offering the best payment processors on the market, that adapt to your needs and guarantee safety, functionality and easy use.
Do you want to be part of the Universum family?
Contact us to be advised on the best payment processing equipment for your business. And remember: at Universum, we offer great benefits with our uCare+ plans -one of them is that your POS equipment investment will always be safe.
If you want to know more about the benefits that Universum can offer to your business, contact our sales agents at +1-978-416-9964 or visit our web page: www.universumsolution.com
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