Restaurant POS Solutions: Are you ready for a credit card PCI security audit?
Credit card security rules required for restaurants
The credit card industry came down hard on tens of thousands of restaurants that have not fully protected their customers’ credit card information from potential theft, with Visa, MasterCard and financial organizations that process electronic payment over recent months sending warnings letters and holding seminars. With these moves, it forces restaurants to take actions on how to further safeguard their diners’ credit card information.
On the side of companies that process card transactions, there are many eateries that are not fulfilling the the security rules set by the credit card industry. So all companies that takes plastic are required to follow a set of security regulations instituted by Visa, MasterCard, American Express and Discover.
In the data recorded by Visa indicates that since January of 2005, around 40% of incidents in which criminals gained unauthorized access to credit card information was made up of restaurants — accounting for the largest percentage of incidents for a merchant category.
Separately, AmbironTrustWave, a Chicago-based data security auditor for merchants, reported that 62 percent of the security violations it witnessed during the prior 18 months occurred in the restaurant industry.
The violations involved different kinds of security lapses such as poor guarding of wireless networks — which enable thieves to access information from the parking lot using a laptop — and lax systems that makes it a lot easier for any employee that attempts to grab credit card data.
Consumers often are unaware when their credit card information is in danger. Not all security breaches produced successful fraud, and mostly, merchants do not recognize these these incidents unless there’s a significant probability that a major fraud has already been identified or about to take place. In addition, credit card issuers don’t usually close a customer’s account unless fraud has taken place.
Restaurateurs may have a difficult time with credit card security rules, since the regulations can be difficult for smaller merchants. The National Restaurant Association trade group says that it hears from restaurant owners who thought they complied with rules, but found out their systems were not functioning properly and were penalized.
Over 0,000, in some cases, is the fine for restaurants that violated credit card industry rules by keeping credit card information. Visa fined merchants across all categories .6 million for security violations in 2006, an increase from the .4 million in fines the previous year.
After recently conducting special security briefings with several hundred restaurants, although they declined to provide a breakdown of merchant types, Visa believes a merchant group needs additional attention.
At the same time, companies that process credit card transactions are also turning up the heat on restaurants. These companies, as punishment, will end services to those who ignore security regulations.
Credit card companies are especially worried about specialized software restaurants use, which combine such features as tabulating bills, delivering orders to the kitchen and tracking reservations. Since credit card companies cannot require software makers to abide by their security rules, they instead apply pressure to restaurants. In Visa’s web site, they maintain a list of software programs that meet its requirements.
But software developers that even with the best software, restaurants could still be in trouble if they do not use password protection or firewalls. Software companies say it is not up to them to let restaurateurs know what they must do to be in compliance with credit card rules.
The author of this article writes for POS-For-Restaurants.com, a VP of Customer Relations with over 20 years experience in restaurant point of sale system, helping restaurant owners nationwide increase their efficiency and bottom-line profits.
To learn on how our national POS network of restaurant point of sale professionals can help your business achieve greater success in these difficult economic times, visit POS-For-Restaurants.com.
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