Worried about credit card PCI security audit?

Sept. 2, 2009 - PRLog -- Credit card security rules for restaurants

You might find it time consuming and tiring, but believe me, it's going to be very bad for you if your business doesn't comply with these rules.

The credit card industry came down hard on many restaurants that have not fully protected diners' credit card data from potential theft, with Visa, MasterCard and financial organizations that process electronic payment over recent months sending warnings letters and holding seminars. With these moves, it forces restaurants to take in consideration additional steps when safeguarding their customers' credit card info.

On the side of companies that process card transactions, tens of thousands of eateries are not complying with credit card industry security rules.  So every restaurant that takes plastic is 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 the incident wherein criminals gain unauthorized access to credit card info is 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.

These violations includes various security lapses such as wireless networks that are poorly guarded -- 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 make it possible for unethical employees to grab credit card information.

Mostly, consumers have no idea when their credit card info is in danger. Although, not all security breaches are successful, and most merchants do not acknowledge incidents unless there is a significant likelihood that a major fraud will take place or has already been identified. Furthermore, credit card issuers usually do not close a customer's account unless fraud has taken place.

Restaurant owners may have a difficult 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.

Over $100,000, in some cases, is the fine for restaurants that violated credit card industry rules by storing credit card information. In 2006, Visa fined merchants across all categories $4.6 million for security violations, an increase from the $3.4 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, companies that process credit card transactions are also turning up the heat on restaurants. Credit card companies, as punishment, will end services to those who disregards the security regulations.

Credit card companies are especially worried about specialized software restaurants use, which combine such features as tabulating bills, delivering orders to the kitchen and tracking reservations. Since credit card companies cannot require software makers to abide by their security rules, they instead apply pressure to restaurants. Visa maintains a list on its Web site of software programs that meet its requirements.

But software makers that even with the best software, restaurants could be in a lot of trouble if they do not use password protection or firewalls. Software companies say it is not up to them to let restaurateurs know what they must do to be in compliance with credit card rules.

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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 http://www.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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