Automatic Merchandiser - 24

and make sure all your keys are
accounted for. Many companies find
that revenue increases right after a
lock changes, so you should have a
plan for rekeying and creating new
keys every three to five years."
PAYMENTS PROCESSING

Payments processing is another key
area of security for operators.
Steve Pidhirsky, director of product
management at USA Technologies,
said that due to frequent data breaches
that have impacted various brands,
consumers are more sensitive to the
importance of securing their data and
realize companies' vulnerabilities.
"Vending and the unattended
world are the last frontier," Pidhirsky
said. "Historically, this market segment was generally perceived as low
risk, thus not needing the same innovations we've seen in other areas."
As unattended retail suppliers
increase their use of technologies such
as AI, data analytics and paymentacceptance methods, that has changed
the level of personal data involved in
purchases, he noted.
"With this knowledge and information, the risks grow, and therefore,
operators and others in this industry
need to be much more prepared,
especially when you consider that,
according to a report by Ponemon
Institute, the average total cost per
breach has increased from $3.54 million in 2006 to $8.19 million in 2019,"
Pidhirsky said.
Pidhirsky said the COVID-19 pandemic has brought unattended retail
and contactless payments considerable
attention. Committing to security best
practices is crucial.
"[The pandemic] has accelerated
an already increasing trend and reaffirmed the need for operators to work
with trusted partners who enable
them to provide a secure and seamless
experience to their loyal consumers,"
he said. "EMV is a good example;

24

Automatic Merchandiser * August 2020

before, it was not deemed
necessary for vending where
the low-ticket items weren't
deemed at risk. But now, with
higher-end products being
sold, it's an extra level of security.
PCI compliance is a great start but it
should be a foundation for continuous improvement and implementation of tech and security best practices
around access controls, encrypting
data transmission and storage, securing networks, and, of course, perpetually monitoring and testing."
Carly Furman, CEO of Nayax LLC,
noted that EMV chip card acceptance
reduces the majority of card fraud,
which is counterfeit fraud, not stolen
card fraud. Therefore, both contact
and contactless EMV certified and
enabled terminals are necessary for
unattended vending and micro market
small-ticket transactions, she said.
"EMV certified and enabled
terminals, like Nayax's VPOS Touch,
ensure operators and their end
consumers have the most secure
payment solution available and give
confidence to operators," Furman
said. "Locations view consumer payment security as a priority on their
premises, and this value translates
to increased and repeat sales plus
securing contracts with locations for
unattended operators."
A magstripe transaction, which is
not EMV compliant, is easily subject
to credit card theft, as the magnetic
stripe carries static credit card information, Furman explained. A thief
could place a skimmer on a non-EMV
reader to extract that information
and make duplicate cards, resulting
in counterfeit card fraud. Conversely,
EMV transactions utilize the chip
in the card and create a dynamic
transaction each time, making stealing the credit card information at the
terminal almost impossible.
Recently, VISA announced that
signatures are no longer required for

attended transactions, regardless of the
amount of the transaction.
"This supports our business model
and reinforces our message that EMV
acceptance (not PIN pad or signature)
reduces the majority of card fraud -
counterfeit fraud - since many credit
cards do not have a PIN pad anyway,"
she said.
By the end of 2020, credit card
companies intend to release 300 million
contactless cards in the U.S., she said.
Payment solutions providers should
be aware of all regulations and initiatives to ensure the safety of payments
and that customers may select from
multiple payment options, including
contactless and mobile app payments.
Nayax devices do not require touching
a PIN pad and reduce cash handling.
"Nayax has the philosophy that
we want operators to be able to take
all of the available payment methods
in the most secure methods possible,"
Furman said.
It is important to use devices that
use 4G LTE, as 2G and 3G towers are
being phased out in the next few years,
Furman noted.
"You're not going to have telemetry
data and you're not going to be able to
accept credit cards if the devices aren't
able to connect to towers," Furman
explained. "Now is the perfect time for
vending and micro market operators
to upgrade to an EMV certified and
enabled payment solution that accepts
all payment types since 2G/3G/CDMA
networks are being sunset by the cellular carriers, requiring new device
upgrades to 4G LTE anyway. The value
of having a cutting-edge payment
solution that also leverages revenueboosting capabilities like loyalty and
advertising results in a quick return
on investment."
LEGAL ISSUES

Heather Bailey, partner at SmithAmundsen LLC, encourages operators
to work closely with their insurance
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