So, it’s been over two years since the famous liability shift in October 2015. For many retailers, upgrading their technology for EMV took priority.
But things were a bit different for the restaurant industry.
- As of March 2017, about 600 million chip cards had been issued in the U.S. per the U.S. Payments Forum.
- In November 2017, the Strawhecker Group reported that 63% of all credit cards were EMV-enabled.
- MasterCard and Visa estimate that 2 million point-of-sale terminals in the U.S. can accept payments made by chip cards.
But on the flipside, in June 2017, Javelin Research & Strategy estimated that 15 million POS terminals still needed to be upgraded to be EMV-enabled.
The good news, though, is that with new pay-at-the-table technology, and with more and more hardware and software being certified for EMV every day, it’s become much easier for restaurants to get ready for chip card technology.
Thus, if you haven’t upgraded yet, you’re not alone.
And now is the perfect time to get ready for EMV!
Three Major Benefits of Upgrading to EMV
Maybe you know that you should upgrade your technology to be EMV-enabled, but there are a few things holding you back.
Perhaps you’re afraid that it will be a significant investment or that it will greatly change all of your processes.
Or maybe you fear that it will take time that you don’t have.
No worries! You’re not the only one. These are very common fears.
Pop into a restaurant forum or type in “EMV” into Google, and you’ll see question after question related to the reasons people haven’t upgraded to be EMV-enabled yet.
But here’s the thing: upgrading your restaurant technology to be EMV-enabled will actually benefit you.
In fact, there are many benefits to upgrading your technology and becoming ready for EMV.
Curious to know more?
Here are three major benefits of upgrading your technology for EMV…
1) You Can Reduce Fraud-Related Liability.
We can’t overstress the importance of this benefit. The reason smart card technology was invented in the first place was to combat credit card fraud. And it has been proven to be effective for card-present credit card transactions across the world.
If you don’t upgrade, you will be vulnerable to increasing credit card fraud. As the U.S. Payments Forum point out in their April 2017 report on EMV:
“Merchants who have not fully implemented EMV chip acceptance technology (or who have decided to retain magnetic stripe terminals alongside their EMV acceptance devices) may face an increasing threat of counterfeit transactions as card fraud rings focus on targets where magnetic stripes are readily accepted.”
By upgrading your technology to be EMV-enabled, you can limit the possibility of large ticket chargebacks, prevent card-present fraud, and exponentially increase your payment security.
2) You Can Increase Your Sales with Faster Service and Improved Productivity.
If you recently traveled to Canada, you might have noticed how easy it was to process a transaction if you went to a restaurant there. The server probably brought a payment terminal or tablet directly to you.
Now, American restaurants can benefit in the same way as Canadian restaurants. This is because mPOS and pay-at-the-table technology significantly reduce the time your servers spend processing payments and reconciling receipts.
Consequently, they won’t have to run back and forth between their customers and the POS devices. Your staff can save valuable face time, and your customers can pay for their meals right from the convenience of their table.
Increased Speed of Service & Revenue
This will also help to increase your restaurant’s speed of service. The wait time will decrease, and you will be able to turn over tables faster. In fact, if you were to increase your table turns per shift from three to four, you could benefit from a 20-25% increase in revenue.
Your servers, meanwhile, will benefit from higher tip amounts!
Boost Back-of-House Operations
Lastly, you’ll be able to boost your back-of-house operations – especially since you’ll decrease tip adjustments at the end of each business day.
3) You Can Enhance Your Overall Customer Experience.
Payment security and credit card fraud aren’t only affecting businesses. With recent data breaches and identity theft, many consumers are concerned about payment security as well.
EMV-enabled technology will provide your customers with the assurance they need that their payments are secure.
They will know that their payment information is being processed in the safest way possible, and you can give them a peace of mind anytime they pay using a credit card or a debit card. You’ll build trust with them, first and foremost.
You can also enhance your restaurant’s overall customer experience with payment convenience.
EMV-enabled technology is not only prepared for chip-and-PIN and chip-and-signature cards, but also for many other kinds of transactions – especially with contactless, or NFC, payments (e.g., Apple Pay, Google Wallet, etc.).
Therefore, whether your customers want to pay with cash, their debit card, or their smartphone, they can do so using any method they want.
More Face Time = Better Customer Experience
Finally, with your servers’ increase in face time with their customers, you’ll be able to provide an unparalleled customer service experience with a personal touch!
To learn more, we invite you to check out the EMV solutions for restaurants available through Midwest POS.
For a more comprehensive explanation of EMV and how it affects restaurants, download our free ebook!