Some of our donors have cards that do not have a magnetic strip. We need access to a chip reader to process payments.
Our readers dont read the strips of cards with a chip so we would welcome a chip reader or an updated device that could read both!
Thanks for the feedback! We continue to evaluate card present chip readers that are compatible with Blackbaud Merchant Services and having chip reader (EMV) capabilities is a requirement in our criteria because of the issues you mention. I'm not able to provide a timeline for when we could offer a card present point of sale device but we continue to actively vet solutions. We will be sure to keep you posted when our plans become more concrete.
Having an EMV reader is past due for us! According to https://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php:
If an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction fall back on the payment processor or issuing bank, depending on the card's terms and conditions.
Since the Oct. 1, 2015 deadline created by major U.S. credit card issuers Mastercard, Visa, Discover and American Express, the liability for card-present fraud has shifted to whichever party is the least EMV-compliant in a fraudulent transaction.
Consider the example of a financial institution that issues a chip card used at a merchant that has not changed its system to accept chip technology. This allows a counterfeit card to be successfully used.
"The cost of the fraud will fall back on the merchant," Ferenczi says.
Hi Art - you're correct about the shift in liability. However, Blackbaud provides certain additional protection to Blackbaud Merchant Services customers who accept credit and debit cards for card-present, machine-read transactions. This additional protection started on October 1, 2015 and will continue until 60 days after the date that Blackbaud supports EMV card readers. During this time, Blackbaud will cover the cost of chargebacks that occur for card-present transactions with chip-enabled cards that are swiped using a magnetic stripe reader. This additional protection is limited to Blackbaud Merchant Services customers using Blackbaud Altru, Blackbaud Merchant Services Virtual Terminal, and Blackbaud MobilePay transactions for chip-enabled cards that are swiped using a magnetic stripe reader. This additional protection includes transactions for the purchase of goods and services for which the nonprofit has a financial loss such as ticket sales, event registrations, scheduled program registrations, membership sales, and merchandise sales. Note, however, that fraudulent, card-present transactions for the purpose of making a financial donation to you are not included in this additional protection program. To receive the liability coverage, your organization must meet all of the criteria above and you must indicate in your communications with Blackbaud’s Chargebacks Team that you have suffered a financial loss. Please email email@example.com with any questions.
@Lee Turner - Thank you for the update - that's very useful information!
A bigger issue for us is that the current credit card readers are notoriously unreliable. Every single time we use the readers, the users complain that they feel flimsy, and that they often can't read the credit cards. This is every single time - even when they are only used for just a few transactions. It's also a hassle that we can't upgrade to IOS12 on our iPads, and that we need to replace our Android4.4 Samsung tablets.
I can understand your pain there, Art. We've heard similar feedback from others, as well. We recognize that this is a pain point and, because of that, another focus point when we look at potential card readers includes reliability and ease-of-use. The card "dip" for chip-reading will also help solve this problem as you would no longer need to swipe along the card's magstripe. In the meantime, check out our knowledgebase article about troubleshooting Mobile Pay card reader connections.
As for your operating systems, you should be to upgrade to iOS 12 without experiencing a disruption in service. Our latest MobilePay release experienced a few issues when we first released back in September because iOS 12 was released only a couple days before it. However, those issues were resolved within a few business days and iOS 12 should work fine for you now. As for Android 4.4, it is unfortunately a decision we've had to make to be able to reasonably support MobilePay going forward. As time goes on, continuing to support older operating systems as new ones proliferate becomes untenable. Usually phones and tablets automatically update to the latest operating system but they all eventually hit the "wall" of not being able to upgrade any further. For what it's worth, hitting that point causes problems for most apps that have been installed on the device.
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