Processors must be EMV-ready in 2013
I just wanted to point out that the card brands, now including American Express, are only requiring processors to support EMV [Europay/MasterCard/Visa] payments by the April 2013 deadline. No deadline has been provided requiring merchants to accept EMV chip and choice payments.
For reference, see http://about.americanexpress.com/news/pr/2012/dmv_roadmap.aspx.
Andrew L. Snell
Client Services Coordinator
Thanks for this clarification. We had erroneously reported in "AmEx joins EMV push," The Green Sheet, July 23, 2012, issue 12:07:02, that American Express Co. "is requiring merchants to have EMV-equipped terminals in place by April 2013."
We have corrected the online version of the story. For readers' benefit, following is an excerpt from the AmEx press release you referenced.
By April 2013, processors must be able to support American Express EMV chip-based contact, contactless and mobile transactions.
Beginning October 2013, merchants will be eligible to receive relief from PCI Data Security Standard (DSS) reporting requirements if the merchants' point-of-sale (POS) acceptance locations, where 75 percent of their transactions occur, are enabled to process American Express EMV chip-based contact and contactless transactions.
Effective October 2015, American Express will institute a Fraud Liability Shift (FLS) policy that will transfer liability for certain types of fraudulent transactions away from the party that has the most secure form of EMV technology. U.S. fuel merchants will have an additional two years, until October 2017, before the FLS takes effect for transactions generated from automated fuel dispensers.
From GS Online's MLS Forum
Thoughts on loyalty
Recently M1CHAEL started a thread on GS Online's MLS Forum titled "Is loyalty really all it's cracked up to be?" He wanted to know whether loyalty programs lead to an overall increase in sales and whether there's a causal connection relationship between loyalty efforts and a change in consumer behavior.
"I have yet to have a merchant who is really interested in gift/loyalty," M1CHAEL wrote. "I haven't written much restaurant business though either, and I suspect that the restaurant vertical is one that stands to benefit from loyalty/gift more so than others. Personally, I don't know that an SMS message is going to really influence my buying behaviors. What do you think? What's been your experience?" Following are excerpts from responses he received:
"Loyalty in customers is created by the product, service and supporting the customer. If you pay $25 or $40 per month for a loyalty system and identify your best customers, you can easily drive response from these programs to bring them back and pay for your investment. ... I think there is a market to identify the unknown client and make them a loyal or returning customer. ... [If] the product or service is not good, no loyalty program in the world can help bring them back.
"Does the card in your wallet drive you to McDonalds, the dry cleaner or other location? Most of the time no, but if there is value add and I'm going anyway, I will use it. [Loyalty programs] are sticky, keep clients from converting and pay for the investment, in those cases, in my opinion, they are a win."
"Speaking as a consumer, most loyalty programs I've seen are just an excuse for the merchant to build a database and send me crap in the mail, my email, and sell my info to other companies so they can do the same."
- J DAWSON
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