Jun
19
2010
Restaurants, Credit Card Processing And ID Theft
Author: adminGoing out to eat is a regular pastime for many folks, which means restaurants manage several transactions through credit card processing each day. This is one of the main reasons restaurants are exposed to more ID theft than other businesses, but thieves are not stealing information from credit card processing transactions the way you might think.
Are Restaurants the Easiest Target?
Visa reports 40 percent of all credit card information theft is traced back to restaurants. Restaurants are also among the most common targets for hackers because they often fail to update anti-virus software and other computer security systems, according to an article from the Associated Press.
In addition, The Motorola 2009 Enterprise Mobility Barometer Study of Hospitality and Technology Adoption revealed security is a very low priority for restaurant owners. It ranked 5th place as a technology initiative behind disaster recovery. In short, restaurants only seem to pay attention once a security breach occurs, rather than preventing it.
In addition to the overall lack of data security, the wait staff can also use credit card “skimmers”. These pocketsize terminals have a swipe strip that copies credit card information off the original card and stores it for download onto another computer for use and distribution. Each skimmer can hold up to 300 cards.
Additional Security Options for Restaurants
Some restaurants now use mobile technology to process payments at the table, which offers the patron some additional peace of mind for data security. The batteries last for quite some time, and a small printer can be attached so the receipt is exchanged at the table. Mobile technology also allows restaurants to streamline data for online reservations and loyalty programs, so the upfront investment has many applications.
However, mobile solutions may be expensive and/or complicated to integrate into current ordering/payment processes, and are still not a priority for restaurant owners. In addition, receipts from credit card processing tend to include important credit card information, something for merchants to consider when choosing a format for customer receipts.
