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Preparing for a restaurant point of sale credit card PCI security audit?

February 9, 2010

Focusing on restaurant credit card security measures

Hundreds and even thousands of restaurants is being opposed by the credit card industry for not sufficiently protecting their customers’ credit card information from potential theft, with Visa, MasterCard and financial organizations that process electronic payment over recent months are sending warning letters and conducting seminars. Such moves are aimed at forcing restaurants into taking actions on how to further safeguard their diners’ credit card info.

On the side of companies that process card transactions, there are thousands of restaurants that are not complying with credit card industry security rules.  For as long as a food service establishment takes plastic, they are required to follow a set of security regulations instituted by Visa, MasterCard, American Express and Discover.

With 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, there are reports from a Chicago-based data security auditor, AmbironTrustWave, for merchants that 62% 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 poorly guarded wireless networks — which easily enable thieves to access sensitive information just outside of the parking lot using a laptop — and the lack of strictness to their systems that makes it a lot easier for an unethical staff to steal credit card information.

Mostly, consumers have no clue when their credit card info is in danger. Although, not all security breaches succeeds, and mostly, merchants do not recognize these incidents unless there is a significant likelihood that a major fraud will take place or has already been identified. In addition, credit card issuers usually do not close a customer’s account unless fraud has taken place.

Restaurateurs may have a tough time with credit card security rules, since its regulations can be very difficult for small sized businesses. Hearing from the restaurant owners who thought they complied with rules, the National Restaurant Association trade group found out their systems were not functioning properly and were penalized.

An amount of 0,000 or more in some cases have been fined to restaurants that violated the credit card industry rules by storing 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.

During the same time, companies that process credit card transactions are also turning up the heat on restaurants. These credit card companies, as punishment, will end services to those who ignore security regulations.

Most restaurants uses special software with features such as as tabulating bills, delivering orders to the kitchen and tracking reservations, credit card companies are especially worried because they cannot force software makers to abide by their security rules, so the pressure it passed on to restaurants. Visa maintains a list on its Web site of software programs that meet its requirements.

But software developers that even with the best software, restaurants could still be in trouble if they lack ample password protection or firewalls. For software companies, they say that it’s not up to them to let restaurant owners know what they must do to in order to comply with the security rules of the credit card industry.

 

 

The author of this article is the VP of Customer Relations at POS-For-Restaurants.com with over 20 years experience helping restaurants nationwide increase their efficiency and bottom-line profits using restaurant POS systems.

You may visit POS-For-Restaurants.com for more information on how our national network of restaurant point of sale experts can help your business achieve greater success in these difficult economic times.

 

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