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

Focusing on restaurant credit card security measures

The credit card industry came down hard on many restaurants that have not sufficiently protected their customers’ credit card information from potential theft, with Visa, MasterCard and financial institutions that process electronic payment over recent months sending warnings letters and holding seminars. Such moves forces restaurants into taking actions on how to further safeguard their diners’ credit card info.

According to companies that process card transactions, there are still tens of thousands of eateries that do not comply with 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.

Data recorded by Visa indicates that since January 2005, restaurants made up around 40 percent of incidents in which criminals gained unauthorized access to credit card information — 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 poorly guarded wireless networks — which easily enable thieves to access sensitive information just outside of the parking lot using a laptop — and lax systems that makes it a lot easier for bad employees to access credit card data.

Mostly, consumers have no clue when their credit card information is in danger. Although, not all security breaches succeeds, and mostly, merchants do not acknowledge these incidents unless there’s a significant probability that a major fraud has already been identified or about to take place. In addition, companies that issues credit cards don’t usually close a customer’s account except if fraud has taken place.

Restaurant owners may have a rough 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.

Fines for restaurants that violate credit card industry rules by storing credit card information have amounted to more than 0,000 in some cases. In 2006, Visa fined merchants across all categories .6 million for security violations, an increase from the .4 million in fines the previous year.

Visa, believes a merchant group needs additional attention, held special security briefings with several hundred restaurants.

At the same time, the companies that process credit cards have also turned the heat on restaurants. Credit card companies have threatened to end services to those that do not follow security regulations.

Since most restaurants uses software combining such features as tabulating bills, delivering orders to the kitchen and tracking reservations, credit card companies are worried because they cannot force software developers to follow their security rules, so they put on the pressure to restaurants. In Visa’s web site, they maintain a list of software programs that meet its requirements.

But software programmers that even with the best software, restaurants could be in trouble if they do not use password protection or firewalls. For software companies, they say that it’s not their part to let restaurant owners 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 experts can help your business achieve greater success in these difficult economic times, visit POS-For-Restaurants.com.