At restaurants and other service-oriented merchants in the U.S., consumers are used to paying for their purchases and “tipping” by handing over their cards for authorization, and then later adding a tip to the authorized amount on the receipt along with their signature.
But this is problematic with EMV, which typically prevents tip adjustments after the initial payment has been authorized. Today, EVO Payments International and Verifone (NYSE: PAY) announced a solution to ease the EMV migration for restaurants and other merchants in the U.S. by enabling them to execute post authorization tip adjustments similar to how they are handled with traditional non-EMV cards.
The solution is EVO’s first EMV approval and settlement software application, and it is certified to integrate with EMV and NFC enabled payment devices from Verifone—one of EVO’s preferred hardware providers for restaurants. In addition to executing post-authorization tip adjustments, the application enables restaurants and other merchants to:
• Open and close bar tabs with EMV cards
• Accept proprietary gift cards, and split payments between gift cards and other payment methods
• Accept EMV without requiring signature in quick service restaurant (QSR) environments
EASING MERCHANT FRUSTRATION
“Merchants that are not already using EMV payment devices are beginning to feel the pain of ‘liability shift’ chargebacks, so Verifone and EVO are providing welcome relief with migration options, which enable EVO to better serve its clients,” said Jim Raftice, EVO’s President, U.S. and Canada.
Merchants often use electronic cash register point of sale (POS) software systems that control the payment process in a semi-integrated fashion with payment terminals and PIN pads. At the end of the day, merchants typically key in the tips added to customers’ signed receipts for post-authorization adjustments. With EMV, a processor-authorized payment application is required to ensure merchants do not assume liability for any card fraud. EVO’s application provides this capability while also preventing merchants and their POS software providers from having to worry about updating and certifying POS software whenever changes occur—saving them considerable time and resources.
BUSINESS AS USUAL
“Restaurants and other merchants where tipping is an everyday occurance represent a significant portion of the U.S. market that is experiencing the most difficulty in migrating to EMV,” said Shan Ethridge, vice president and general manager, North America Financial Services Group, Verifone. “Either because of the inability to do so or the cumbersome processes involved, tip adjustments present a major obstacle that has made EMV remarkably complex for these merchants. Fortunately, integration with Verifone devices will help simplify EMV for EVO’s merchants by giving them the ability to handle tips in virtually the same manner they always have.”
EVO’s payment application will initially be available on Verifone’s VX 520 countertop payment terminal, and subsequently the VX 805 CFD. The application can be directly updated with new features to accommodate changing EMV requirements without requiring payment device recertification.
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