Maybe you’re a routine user of the grocery store’s self-checkout line, or perhaps you just admire from afar as you wait your turn behind a long line of coupon clippers. Either way, the traditional self-checkout kiosks found at countless grocers and box stores across the nation have become a mainstay at those big name merchants, making shorter work of our daily errands.
So, it comes as no surprise that, after years of witnessing the convenience these self-checkouts serve, many retailers are using the concept as a launching pad for even better and more innovative programs to enhance the consumer experience.
The following examples showcase the best of nontraditional self-checkout processes that have been introduced to consumers in the recent year. Kroger’s Scan, Bag, Go
According to Progressive Grocer’s recent “85th Annual Report of the Grocery Industry,” 24.3 percent of grocers are now offering in-store mobile product scanning compared to 8.5 percent from last year’s report. This double-digit increase highlights the quick adoption of scan and pay systems in the grocery industry, with Kroger being a popular example because of its objective to roll out its Scan, Bag, Go program to 400 stores in 2018.
The program allows customers to use a handheld scanning device or a mobile app on their phone to scan and bag items as they grocery shop. Participants can easily pay at the store’s self-checkout area or, in the future, directly through the app. Extra perks include keeping a running order total, access to weekly sales ads and receiving digital coupons.
The obvious benefit of this program falls in line with the big trend in retail over the last couple years: convenience to the customer. With e-commerce providing the ultimate in frictionless shopping experiences, consumers want the same simple and speedy checkout to which they’ve grown accustomed.
Not only does scan and go technology provide this, but it also offers many other advantages to both the customer and retailer. Digital receipts and coupons save consumers the hassle and retailers the money, while a post entitled “The rise of scan and go technology and how it works” on Rambus.com also states a benefit as “[p]roximity-based in-store advertising, pushed out as notifications to shoppers’ phones, can adapt displays and offers to customers’ individual preferences as they approach different beacons in the store.”
Since Kroger’s Scan, Bag, Go pilot program started last year, feedback has been positive, and the grocery retailer has continued with its plans to roll out the program across the country.
Walmart’s Check Out With Me
In a recent press release, Walmart announced it’s testing a new program called Check Out With Me at more than 350 of the store’s Lawn & Garden Centers across the nation.
The goal behind the service is to ease a pain point often associated with purchasing items from the lawn and garden area of a big box store – the time expended to transport awkward or messy items such as plants, mulch or dirt, through the physical store to checkout.
To address this checkout friction point, Walmart associates at the select Lawn & Garden Centers are equipped with devices and Bluetooth printers to ring up a customer, accept payment, and provide a receipt on the spot. The simplicity of the process not only saves patrons time, but allows them to carry bulky items straight to their cars instead of waiting in a traditional checkout.
As of now, Walmart has only confirmed plans to roll out the service to the 350 stores, however many speculate this program could be replicated within Walmart stores to offer convenience and a faster checkout to store patrons. Amazon Go
There’d be no way to write an article about nontraditional checkouts without citing the most apparent example of all. In January of this year, Amazon unveiled a shopping experience like no other with the opening of its first Amazon Go store in Seattle.
If you think scan and pay makes checking out easy, you haven’t experienced Amazon Go’s automatic checkout. As commonly reported, Amazon has been discreet about the details, but the overall system works with an array of miniature cameras and special technology that recognize items being taken from the shelves. When customers enter the store, they walk through gates that confirm they have the mobile app. Once they select their purchases, they simply walk back out and their mobile app is charged for the items taken.
Aside from the novelty of a checkout experience that hasn’t been done before, the store has garnered quite a bit of attention because of the future impact this technology could have on the retail experience.
With Amazon’s reach, many wonder if we’ll see a program like this at Amazon-owned Whole Foods (so far, reps have denied this) or offered as a service to other businesses looking to integrate a new level of convenience to retail customers. Time will tell, of course, but recent reports show the company is planning to expand to the San Francisco and Chicago markets, which likely indicates the initial metrics must be favorable at the inaugural store.
We’re seeing once novel options like self-checkout aisles become the more traditional predecessor to innovative programs from Kroger, Walmart and Amazon that offer convenience to customers at the point of sale. And as the technology constantly evolves and inspires, all grocers and big box retailers will need to take note as they invest to improve their own customers’ experiences. Is your company looking to expand its nontraditional checkout system? Take a more detailed look at our work on Kroger’s Scan, Bag, Go program, and read up on our partnership with Amazon on its college campus kiosks. Then, contact us for a professional consultation.
Kroger’s Scan, Bag, Go program, designed by Frank Mayer and Associates, Inc.
A Walmart employee utilizes the Check Out With Me program to ring up a customer. Photo courtesy of Walmart.
The Rise of the Nontraditional Checkout was last modified: June 20th, 2018 by News Editor
Aberdeen, N.C. – June 12, 2018 – Meridian, an industry leading kiosk manufacturer and software developer, has expanded their self-service solutions to include a lineup of automotive specific kiosks. “Automotive manufacturers and dealers are looking to improve the consumer journey and deliver the dealership experience of the future,” said Todd Marcelle, Director of Automotive Solutions. “Consumers are used to self service technology across many other retailing environments and expect the same from the automotive industry.”
The new automotive solutions are designed to improve and enhance the automotive customer experience by providing an end to end fully integrated DMS and CRM solution comprised of software, hardware and analytics. “Our automotive kiosks help dealerships interact with retail and service customers in a way that leaves them more satisfied and more likely to return,” said Meridian founder and CEO, Chris Gilder. “Our kiosks have proven to reduce transactions times, improve CSI and increase revenue producing a demonstrable ROI for dealerships.” Meridian’s kiosk solutions are currently deployed with major brands at select dealerships including Toyota, Mercedes-Benz, Audi, Ford, KIA, VW, Porsche and Nissan.
Meridian’s automotive solutions are comprised of the Showroom Digital HUB, Virtual Service Advisor and Smart Service Kiosk. The Digital HUB provides a digital shopping experience for customers within a showroom. Mike Nyguen, GM of Jack Taylor Toyota stated: “With the digital HUB, we are now capturing 99% of customers correct contact information into our CRM system and our CSI scores are well over 96%. Our customers recover an average of 1.5 to 2 hours from the car buying process.”
The Virtual Service Advisor (VSA) and Smart Service Kiosk (SSK) streamline automotive service for customers and businesses. “Our goal was to create a complimentary experience for those consumers that prefer self–service similar to the banking, travel and restaurant experiences. The solution mirrors a service advisors workflow providing recall, trade appraisals, upsells and electronic signatures,” said Marcelle. “The most compelling result is that over 95% consumers have said they would use the kiosks again and it made the experience easier.”
Meridian’s automotive solutions are designed and manufactured from their headquarters in North Carolina. “All of our products are built from start to finish by our own team of experts, ensuring the combination of engaging design and reliability,” said Gilder.
By introducing any new gadget or application to your company, you’re potentially opening your cyber doors to unwanted guests. See how this meeting room booking system Joan is tackling this highly sensitive matter.
Thin client vs fat client – security of meeting room booking systems was last modified: June 19th, 2018 by Kiosk Industry
Good article on how Square has taken charge of its hardware and utilized design principles based on dual-user employee-customer interface model.
The 10″ iPad that swiveled had too many shortcomings. Now it is a purpose-built Android at 13″ and two screens.
The result of the whole process was not a single tablet, but a two-in-one device. The Square Register is comprised of a 13-inch, anodized aluminum tablet, which is stamped and machined. It has an HD touchscreen display and, while it’s attached to a stand, it was designed to look like it’s hovering in space. The second, seven-inch tablet can either be docked in the back of the big tablet, or sit elsewhere on the counter, attached by micro-USB. This small tablet’s display is Gorilla Glass, in case it gets dropped or knocked off the counter.
The register is running on two Qualcomm Snapdragon 615 processors. And in a move that is indeed very Apple-y, Square has designed its own secure enclave, a co-processor for processing encrypted payment information. About a dozen employees at Square work on the silicon team.
BOSTON — The world’s first restaurant with a robotic kitchen that cooks complex meals has opened. Spyce’s automated kitchen has seven cooking woks able to serve up to 200 meals an hour.The Boston eatery’s menu is based on a half-dozen bowls with flavors t
ZIVELO Wins 2 Awards at ICX Summit for Achievement in Interactive Customer Experiences.
The #1 QSR mobile kiosk company receives two awards
Dallas, TX – June 13, 2018 – ZIVELO, the leader in interactive self-service kiosk and digital signage solutions in the QSR arena, has been appointed to receive two prestigious awards at the ICX Summit in Dallas on Wednesday, June 13, 2018. The Elevate Awards honor the individuals and organizations that are pacesetters in using technology to elevate customer experience.
ZIVELO will receive Best ICX Deployment: Restaurant and Best ICX Deployment: Financial Services at this year’s ICX Association Elevate Awards for providing nearly 10,000 kiosks to one of the top three QSR’s in North America, and for their groundbreaking virtual banking expert kiosks deployed at a top US-based financial institution.
ZIVELO produces award-winning, self-service kiosk and digital signage solutions for a portfolio of global companies. This includes the top three fast food chains in the nation, as well as top brands across the retail, banking, healthcare, restaurant, and hospitality industries. Their newly launched software product, OakOS, allows ZIVELO’s customers and third-party developers to rapidly build and deploy applications with the only developer kit designed for kiosks. Clients can now develop fully-functional applications within days, by using OakOS’ comprehensive web-based frameworks and SDK. Backed by ZIVELO’s network of support technicians, this comprehensive offering removes previous common barriers in the industry.
ZIVELO’s mission is to revolutionize the way brands use technology to interact with their consumers on-premise and in the physical world. Founded in 2008, ZIVELO has rapidly grown to become the leading self-service technology brand offering a sleek and sophisticated product design, intuitive user experience, and cutting-edge modular hardware solutions. In 2018, ZIVELO acquired Oak Labs, the creators of OakOS – the world’s first operating system for public computing experiences. Through the acquisition, ZIVELO now provides brands with an end-to-end solution for the roll-out of kiosks and digital signage. For more information, please visit http://www.zivelo.com/.
ZIVELO Wins Two Awards at ICX Summit was last modified: June 14th, 2018 by News Editor
SICOM Acquires Self-Order Point of Sale Solutions Provider NEXTEP SYSTEMS
Lansdale, PA and Troy, MI – June 12, 2018 –SICOM announced today the acquisition of NEXTEP SYSTEMS, a provider of self-ordering point of sale solutions, digital signage and restaurant management software for managed food service, quick service and fast casual restaurants. NEXTEP’s lineup of self-ordering solutions includes kiosks, touchscreen drive thru systems and mobile ordering and will be added to SICOM’s Encounter™ Omni-Channel Point of Sale platform.
NEXTEP was founded by Tommy Woycik when he realized self-ordering technology could prevent people from waiting in lines at restaurants. After creating its first self-ordering solution, NEXTEP has expanded its product catalog to include a full spectrum of order management solutions on its single-platform, cloud-based architecture.
NEXTEP has also introduced several innovative technologies in the self-ordering space, including Intelligent Upsell™ for increasing check averages and facial recognition functionality that provides a personalized guest experience.
“We are truly excited to welcome NEXTEP to the SICOM family,” said Jim Flynn, CEO of SICOM. “The talented team at NEXTEP has created an impressive lineup of industry-leading and inventive self-ordering technologies, and this acquisition will allow SICOM to offer the most comprehensive omni-channel point of sale platform in the industry. We’re also excited to expand into managed food service and fast casual restaurants with a broader and proven suite of products designed specifically for these markets.”
“The team at NEXTEP has accomplished a tremendous amount since our inception in 2005,” said Tommy Woycik, President and Founder of NEXTEP. “SICOM is a perfect fit for NEXTEP, and we are excited to join a company with the same level of commitment to providing leading technology solutions to managed food service providers and quick service and fast casual restaurants. We’re confident that joining forces with SICOM will provide new opportunities for the NEXTEP team and our customers.”
ABOUT NEXTEP SYSTEMS
From Self Order Kiosks and Touchscreen Drive Thrus to mobile ordering and traditional POS terminals, the NEXTEP SYSTEMS solution empowers guests to check out faster, resulting in bigger check totals and higher sales volume. With 7 patents granted and 4 more pending, NEXTEP SYSTEMS offers the industry’s first and only 360° integrated foodservice technology platform to more than 1,500 managed food service, QSR, and fast casual customers.
SICOM Systems, Inc. is a leading best-of-breed provider of end-to-end technologies and services for quick service and fast casual restaurants. The company offers front-of-house solutions (Digital Menu Boards, Point of Sale and Order Confirmation Units), back-of-house solutions (Drive-Thru Director™ and Chef™ Kitchen Management), as well as above-restaurant solutions (360° Data Analytics, SEMS4 Restaurant Management and RTIconnect Restaurant Management) that are helping leading restaurant brands around the globe streamline their operations. SICOM has over 40,000 digital menu boards, 8,000+ Drive-Thru Directors and 7,000+ Chef Kitchen Management solutions in operation worldwide, while its Point of Sale systems are in more than 6,500 restaurants worldwide and it has more than 10,000 restaurants leveraging its enterprise management systems. Founded in 1987, SICOM is headquartered in Lansdale, Pa. and can be found online at www.SICOM.com.
Acquisition – SICOM Acquires Self-Order Point of Sale Solutions Provider NEXTEP SYSTEMS was last modified: June 13th, 2018 by News Editor
SEKO MedTec Solutions focuses on providing specialized, turnkey transportation, logistics, warehousing, and installation services for sensitive, high-value and highly visible equipment for our clients around the world.
Our expertise and service structure make us the optimal partner for the interactive kiosk, digital signage, touch screen, and store fixture industry. An overview of our program and services includes:
Dedicated Logistics Coordinators in SEKO Control Towers
Regional distribution warehouses to reduce transportation spend
Specialized, scheduled, “White Glove” pickup and delivery
Customized delivery and installation services
US and Canadian ground transportation via SEKO Air-ride network
Equipment installation, setup, testing, repairs, swaps, and returns
MySEKO, our online portal, provides real-time visibility and control of your orders as well as comprehensive supply-chain reporting
Asset and Event Management system manages device history records, administers equipment maintenance, and gives you the ability to view andtrack all of your assets in the field
Removal and returns management (inspection, testing, cleaning, kitting, packing, recycling, and certified destruction)
Forward stocking locations
Recurrent inventory expertise for Lease/Loaner programs
Complete logistics for trade shows and other short-term events
Custom crate and packaging evaluation, design, and production
The benefits of our service include:
Improving customer satisfaction through timely and professional equipment delivery and installation
Ensuring your equipment consistently arrives in great condition and is functioning properly
Expanding your domestic and international footprint with parts depot storage, logistics, and support services
Minimizing administrative time and expense with one primary point of contact
Utilizing our cutting-edge online technology to minimize transportation expense, collect extensive amounts of data for financial and operational KPI analysis, run customized reports, and view real-time metrics
Increasing customer satisfaction by ensuring equipment is routinely and professionally maintained
Enhancing equipment information with documented maintenance and repair records
Improving knowledge of customer experience with our dedicated questionnaire program
Asset and Event Management
Whether you have complex installations of in-store displays or need to launch new products in hundreds of sites by a definite date, SEKO is there for you around the globe with our Asset and Event Management technology and services. Designed specifically to accommodate rigid deadlines, little or no down time, and irregular pickup and delivery hours, this is the most dependable way to schedule people and products and ensure they arrive on time to reduce costs and significantly enhance client service. Our technology gives you real-time visibility into your assets out in the field, while we manage the transportation and all the related logistics.
One of our customers, Sphere 3D Corp., delivers virtualization technology and data management products that enable workload-optimized solutions. Read what they have to say about the service and performance provided by the SEKO.
It’s been pretty busy but I wanted to stop for a moment and congratulate the following 5 locations for their implementations of our World’s Fastest Drive Thru™ Solution:
• Bennett Holdings Group – #10199 Johnstown, PA
• Kristen Chandler – #68779 Midland, TX
• Russell Rogers – #50511 Bentonville, AR
• Steve Adams – #59469 Anchorage, AK (FIRST IN ALASKA!!)
• Ricky & Niki Cook – #13878 Walhalla, SC
Beautiful locations for all with many more to come this year! Speed, accuracy, throughput, and so much more have been key factors with these rollouts. If you are in the area for one of the locations, stop by for breakfast, lunch, and dinner to experience it for yourself!
Version 8.14 of KioWare for Windows is now available with a brand new Guided Setup allowing customers to quickly and easily set up KioWare for Windows to display interactive and non-interactive digital signage, videos, and KioCall video conferencing. With this new Guided Setup, KioWare can be configured to secure a Windows device into a kiosk with only a few clicks. New supported devices have also been added.
June 5, 2018 York, PA – Analytical Design Solutions Inc. (ADSI) has released a new version of KioWare for Windows kiosk software with an all new Guided Setup wizard to help first time users configure KioWare for Windows.
KioWare kiosk software products lock down your device into kiosk mode, which secures the overall operating system, home screen, and usage of applications.
In addition to the new Guided Setup tool, version 8.14 of KioWare for Windows (Lite, Basic, & Full with Kiosk Management) has added support for Chrome 65. KioWare Basic & KioWare Full for Windows now support devices such as the Stimare printer (supporting printing to RFID bracelets), Star printers, Telequip (coin dispensers), Epson receipt printers, and support for ccTalk for bill/coin acceptors. View all supported devices here.
The new Guided Setup provides users with the option to easily configure KioWare for Windows to show interactive content (browser-based), non-interactive digital signage, and as a video conferencing kiosk using the KioCall Videoconferencing app. Additional settings can also be configured by answering questions and progressing through the Guided Setup. As always, users can opt to exit the Guided Setup and configure KioWare directly through the configuration tool at any time.
Support must be current to upgrade to the latest version.
Additional features are also included in this release. View a full description of features added to this and other versions of the KioWare product line.
Many restaurants in the industry begin their self-service technology journey with a pole-mounted tablet solution.
However, these solutions don’t significantly disrupt consumer behaviors to increase ticket size and ROI. Additionally, they break down easily, the entire unit has to be replaced when this happens, and this solution is often scrapped in order to deploy a new product set at significant additional cost. Below we have outlined just a few of the benefits of our large-screen solutions, with durable commercial-grade components, the ability to update and repair individual units thanks to our modular design, and more. Plus, all of our product footprints can be adjusted to fit any size and space while still leading to greater ROI than other smaller screen solutions. It’s time to discover the ZIVELO difference, and rely on our experience successfully deploying thousands of kiosks to the top QSR’s in the nation. Are you ready to work with the best?
Driving Technology Through Innovation: Peerless-AV’s InfoComm 2018 Showcase
AV solutions designer and manufacturer exhibits new Xtreme™ High Bright Outdoor Displays, SEAMLESS LED Solutions, Smart City and Outdoor Kiosks, Mounting Systems, and more at Booth C2947 LAS VEGAS – June 6, 2018 – Peerless-AV®, an award-winning designer and manufacturer of innovative audio and video solutions and accessories, is pleased to announce its showcase at InfoComm 2018, June 6-8, at the Las Vegas Convention Center. Peerless-AV’s Booth (C2947) will highlight its new high bright outdoor displays, LED Program, kiosks, carts, custom mounting solutions, and more.With over 75 years of audiovisual experience, Peerless-AV’s commitment to the creation of cutting-edge technology has elevated the company to the status of an innovative industry leader. Peerless-AV proudly designs and manufactures the highest quality products, which solve even the most complex design and technology integration challenges to create an ideal solution for any unique application.At InfoComm 2018, attendees visiting Peerless-AV’s booth will have the opportunity to meet with Peerless-AV industry experts to discuss their upcoming integration needs. Further, they will have the opportunity to see the following products on display:
Peerless-AV’s newest addition to its line of performance displays, the Xtreme™ High Bright Outdoor Displays (XHB Models), offer 2500 nits of light output and full HD 1080p resolution for a bright, crisp picture and color accuracy at viewing angles up to 178°. Featuring a fully sealed IP68-rated design and an operating temperature range of -31°F to 140°F, there is no need to change filters or service the display, creating a maintenance-free solution for year-round digital signage use. Available in 43″, 49″, 55″, and 65″, the Xtreme™ High Bright Outdoor Displays include IK10-rated cover glass for the ultimate screen protection.InfoComm attendees will have the opportunity to witness numerous live demos in Peerless-AV’s booth, showcasing the unmatched capabilities of the new Xtreme™ High Bright Outdoor Displays.LED Video Wall Mounting Solutions
With a modular design developed to fit the specifications of any LED display, Peerless-AV’s LED mounting systems offer unlimited video wall configurations. The systems provide height and depth adjustments to overcome any installation irregularities, ensuring pixel alignment and a flat plane. In addition, a lightweight aluminum design and predetermined adaptor rail locations speed and ease installation while minimizing errors. Peerless-AV’s mounting systems also include tight tolerances and wall plate spacers, assuring all cabinets are properly positioned.The new systems are part of SEAMLESS by Peerless-AV, a one-of-a-kind all-inclusive or bespoke program for LED video wall integration. With SEAMLESS by Peerless-AV, integrators can expect start to finish support for all of Peerless-AV’s LED mounting solutions.
Peerless-AV’s Large Venue Projector Mount (PJR250) is designed to be installed and removed quickly, making it the ideal solution for the rental and staging market. It is built to safely support large ceiling structure venue projectors and provides tilt, roll, lateral, and swivel adjustments to obtain perfect image alignment. The mount is also equipped with dedicated adaptor plates to perfectly balance the projector’s center of gravity, making it more sturdy and safe, and preventing the likelihood of projector sag over time.
Part of Peerless-AV’s range of indoor and outdoor kiosks showcase is the All-in-One Kiosk Powered by BrightSign® (KIPICT555). This award-winning kiosk features a well-built, sleek design with an integrated 55″ commercial LCD display that offers six points of IR touch. The All-in-One Kiosk features full HD 1080p60 video decoding, HTML support, networked content playback, and more.
For outdoor use, Peerless-AV’s showcase will also feature the new Smart City Kiosk. An all-weather rated solution, this kiosk includes an Xtreme™ High Bright Outdoor Display with full HD1080p resolution, easy display access, and a seamless installation. With the ability to withstand up to 150 mph winds, the Smart City Kiosk is ideal for any outdoor setting.
Making its debut at InfoComm 2018, the ADA-compliant Motorized Collaboration Cart (SR598ML3) integrates the use of actuators, making it easy for users to raise and lower touch-enabled displays up to 25.6″ with the touch of a button. It is also UL962 listed and features a safety limit function, which automatically reverses direction when a collision is detected in an upward, downward or lateral force.
The Motorized Collaboration Cart touts a six outlet, 2160 joule-rated surge suppressor and a 15-foot pre-installed cord in the rear of the cart, as well as a large enclosure with plenty of space for small PCs, additional cables, and keyboards, and an opening for an external Wi-Fi antenna. Its base includes bumpers to prevent damage, though it is designed to fit easily through doorways. Further, the cart features 4″ casters for rigidity and stability, as well as a pre-assembled design with no wiring required – providing the fastest cart assembly on the market.
To see Peerless-AV’s full showcase of outdoor displays, kiosks, mounts, carts, and more, visit InfoComm Booth #C2947.
Driving Technology Through Innovation
For over 75 years, passion and innovation continue to drive Peerless-AV forward. We proudly design and manufacture the highest quality products, ranging from outdoor displays to complete kiosk solutions, digital signage mounts to wireless systems. Whether a full-scale global deployment or custom project, Peerless-AV develops meaningful relationships and delivers world-class service. In partnership with Peerless-AV, you are trusting an award-winning team of experts who will support your business every step of the way. For more information, visit peerless-av.com.
Further, today Peerless-AV announced two additional items. Here are all three Press Releases from Peerless-AV :
EMV deadlines have arrived, but many choose to skip the upgrade. EMV is still split into two big camps. One that is compliant and the other which will be, but not yet. Our prime supporting sponsor for this update is KioWare. Thanks!
Richard Slawsky is an Educator and freelance writer, specializing in the digital signage and kiosk industries.Louisville, Kentucky Area
Which costs more, complying with new regulations or not complying and hoping for the best?
The question is particularly relevant when it comes to kiosk deployers complying with Europay, Mastercard and Visa (EMV) regulations. Invest in upgrading equipment, or run the risk of being hit with chargebacks and fines in the event of fraud?
Although the lack of clear incentives or financial impacts have prompted some to skip those upgrades, it may be wiser to begin the planning process now. When the inevitable kiosk fraud case makes headlines, it will likely set off a compliance rush that may leave some deployers waiting months or years to get their devices upgraded and certified.
Meeting EMV deadlines
The Wikipedia entry for EMV defines it as “a payment method based upon a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them.” EMV “smart cards” store their data on integrated circuits in addition to the traditional magnetic stripes.
The Path to EMV
CC readers as keyboard wedge. They take input & then act like a keyboard echoing out the numbers thru port.
Credit companies keep data on unprotected and unencrypted servers.
Europe sees better way & requires solid encryption paired with a PIN (aka Chip and Pin).
The US defers requiring that for time being and does not follow Europe’s lead.
Growth of Internet and rise of credit cards Mastercard and VISA in US agree that encryption is a good thing. Maybe even a PIN…
EMV liability timetable put in motion. ATMs hugely affected (in US only) as are retailers.
CC readers add encryption in advance. Magtek and IDTech good examples. Instead of open Keyboard Wedges we now have encryption capabilities. No chip, though, and no PIN.
Deadline nears – everybody knows it is time to use chips, assuming liability for not doing so is above profit threshold. Somebody that does relatively small transactions will never be a target for stolen credit cards (Redbox e.g.). Does liability outweigh cost of upgrading, and affecting bottom line and potentially share price?
Signature used or zip code as presumed id token.
Data systems becoming more secure with better firewalls, less physical access, and encryption but most are not.
Big incidents (Target) increases pressure to upgrade all systems. Target’s backend was entry point via a vendor with free malware.
Nowadays EMV means getting a chip reader. It means securing the back end (ask Equifax…).
It used to mean signature too but no more.
Does not mean a PIN. With some consumers carrying multiple cards, it is impossible for them to use a secure PIN for each card because they’ll never remember.
Card data remains relatively safe on the front end (with CHIP) though there are many who still swipe (40%?) and IT Departments pay more attention to security on back end. One could argue penalties for breaches be increased as money is best motivator. See HIPAA privacy.
Because the chips are supposedly impossible to clone, smart cards offer vastly improved security compared with magstripe-only cards. But while smart cards include a magstripe along with the integrated circuit for backwards compatibility, the improved security only applies when used with an EMV-compliant card reader.
Although EMV compliance is an ongoing process in the United States, EMV technology has been standard in Europe for years with chip-and-PIN standard and contactless payment cards exploding.
“The card I use for business is probably 60% chip and pin 40% contactless by number of transactions, and I don’t think I’ve ever been asked to confirm a contactless payment by providing my pin,” said Nigel Seed, who runs KioWare Europe now. “A lot of people simply mistrust contactless and refuse to ever use it, in fact some people contact their bank and tell then to send them a replacement card without that facility, but busy metro type professionals typically do use it more than the average.”
To incentivize businesses to upgrade their card readers to EMV-compliant devices, the four major U.S. credit card issuers – Visa, MasterCard, American Express and Discover – established Oct. 1, 2015 as the deadline when credit card fraud liability will shift to merchants or processors if they do not have an EMV payment system ready.
If fraudulent card use occurs at a merchant that has not upgraded their equipment to EMV technology, the merchant eats the cost of the chargeback along with any fines or fees that may be levied. If that merchant’s processor has not made an EMV-compliant solution to the merchant, or if the card issuer has not issued EMV-compliant cards to its cardholders, the processor or card issuer assumes the liability.
Despite that deadline, though, deployers of self-service devices have been slow to bring those devices into compliance with EMV, in part due to the complexity and cost of upgrading. Making a kiosk or other self-service device EMV-compliant isn’t simply a matter of swapping out a card reader. Along with upgrading the payment terminal and software, other infrastructure involved in the transaction, such as data storage devices, must be upgraded as well.
EMV compliance affects all systems involved in the payment process, not just the payment terminal. Data warehouses are likely the biggest target of all and the eventual destination of data provided at a public terminal. If a retailer takes that highly encrypted data and then stores it as plain text on some in-house data warehouse that thru the vagaries of Microsoft networking is accessible via a simple vendor logging into a portal, they are vulnerable to EMV compliance issues.
In addition to upgrading hardware, compliance also involves the processor and the card issuers certifying that transactions are originating from an EMV-certified device, and that all software and middleware is PCI-DSS complaint as well as being compliant with international operability standards established by EMVCo, the consortium that manages EMV standards. That process could take several months.
What About A Pin Pad?
When do I need a PIN pad? Here are the basics:
The United States has historically had two kinds of Cardholder Verification Methods (CVM); PIN for debit transactions and signature for credit transactions at attended terminals. A signature was not valid for unattended scenarios under the logic that a kiosk can’t check an ID or signature.
In recent weeks card brands declared Signature to be obsolete and optional in the United States. This really had no impact on unattended as the standard for unattended credit purchases was No CVM.
The vast majority of debit cards issued in the US are called “dual application,” meaning they also carry one of the card brand logos and as such can be used on both debit networks (with PIN) and credit networks (optional signature). Think of the phrase ”Visa check card.” The transaction is performed on the credit network, but the money really comes out of your checking account as opposed to a line of credit.
Acceptance of PIN debit at a kiosk is optional, although there are cases where acceptance of debit is beneficial, such as bill pay kiosks where transactions could be potentially very large. This would be advantageous to a bill pay kiosk businesses when you consider a debit transaction has a fixed cost, while a credit transaction has a percentage of the sale amount fee.
From the perspective of fraud protection it is sort of a non-factor because crooks don’t go around paying their bills with stolen cards. In the case of a kiosk in the mall selling $200 headphones, though, it would be advantageous from a cost of transaction perspective as well as the prevention of card fraud and product loss.
Deciding if having a PIN pad on the kiosk is right for you really comes down to a few factors:
What is the average sale amount, and considering that amount does the potential savings of the fixed cost of a debit transaction vs the % cost of a credit transactions justify the increased hardware cost of adding a PIN pad for debit acceptance? Essentially, what is the ROI of the PIN pad and ability to accept debit?
What is the risk and true cost of loss of product at my kiosk, and does that warrant the cost of a PIN pad?
As an example, let’s say a photo kiosk sale amount maxes out at $50, and using an estimated credit transactional cost of 3.5% as a baseline, transactions will cost $1.75 to run as credit. Given debit transactions typically hover around $1.25/$1.50, the outcome of the financial decision tree says maybe the increased solution cost of the kiosk with PIN pad isn’t showing a strong ROI, or at least one that cannot be realized in the short term.
Furthermore, the risk and cost of lost product is low, and it will take selling a lot of prints to make up for the cost of the PIN pad. In this example it would make sense to forgo PIN debit acceptance at the kiosk and instead process debit cards over the credit network.
“Each payment processor generally drives their own certifications, so timing varies pretty dramatically between payment processing certification teams,” said George Hudock, who handles business development with Datacap Systems, a developer of integrated payment systems.
“Most kiosk providers will use a third-party payments solution to avoid the on-going EMV certifications and maintenance, so most are able to avoid the EMV certifications directly,” Hudock said. “However, EMV certifications for unattended devices generally take 3-5 months once queued.”
Although it’s difficult to tell how many non-EMV-compliant kiosks are out in the field, experts say 50-60 percent of point-of-sale terminals aren’t EMV compliant. It’s likely that the percentage of non-EMV-compliant kiosks is similar. Still, experts say it could be several years before the vast majority of self-service devices in the marketplace are brought in line with EMV regulations.
Overall, the EMV migration in the United States is proceeding as well and as speedily as anyone could reasonably expect considering the somewhat tortured circumstances in which it was launched and the technical complexity and costs of its implementation, said Leland Englebardt, Practice Leader, Financial Services at New York-based UpshotAdvisors.
“Remember, it was not long after Dodd-Frank was enacted, which required many significant changes in payment card infrastructure, economics and rules,” Englebardt said.
“We are beginning to see the results in less counterfeit card fraud, which is good for everybody,” he said. “However, the security of EMV is materially enhanced by adding point-to-point tokenization and encryption. As cyber-crime is now the most active and challenging area of payments fraud, it’s possible that in the near future we will see more mandates and/or liability shifts for those technologies.”
EMV confusion still reigns
Part of what seems to be hampering EMV compliance is a lack of clarity on the part of deployers over where kiosks fall under EMV regulations. Is there a difference between attended and unattended devices? What about those that accept or dispense cash?
According to Visa’s Transaction Acceptance Device Guide Version 3.1, the term Unattended Cardholder Activated Terminal (UCAT) refers to an acceptance device managed by a merchant that dispenses goods or services, at which the card and cardholder are present, but the functions and services are provided without the assistance of an attendant to complete the transaction. These devices include cardholder activated fuel pumps, self-service vending units, and self-service payment devices in parking garages or at parking meters.
Devices that support cash dispensing and provide goods and services must comply with the Visa rules and regulations appropriate to the transaction:
• When dispensing cash, the device is considered an ATM and, therefore, must adhere to the Visa rules and regulations for ATMs. • When dispensing goods or services, the device is considered a UCAT and must adhere to the Visa rules and regulations for unattended purchases.
Although unattended devices (e.g., ATMs, UCATs) may dispense goods and services as well as cash, transactions involving a purchase with cash back are not allowed. In other words, an unattended device may dispense either cash or goods and services in a single transaction but not both. In addition, UCATs that dispense scrip are not addressed because the Visa rules and regulations prohibit Visa card products from being used for scrip transactions. (Scrip is a two-part paper receipt redeemable for goods, services or cash.)
Attended Cardholder Activated Terminals, such as self-checkout terminals in supermarkets, are not considered UCATs and therefore are not required to meet UCAT requirements.
The guide also mentions a third category, “semi-attended,” to describe Semi-Attended Cardholder Activated Terminals in the Europe Region.
If you want to benefit from low cost EFT like Verifone VX820 series (<200USD) and you want to install in Semi-Attended environment you should cover unneeded and unwanted functions by a plastic form.
Pyramid did it for instance in the McD Europe case. The customer can benefit from the low cost EFT and the “white” form embeds the EFT in an elegant and ergonomic way and in same time it covers the magnetic card function on the side of VX820 which would be not needed and would only make customers unsecure which way to use the device. With our embedded form, that ensures that the customer uses or NFC or Chip Card function.
“This has resulted in self-service manufacturers creating a third optional semi-attended solution, in conjunction with VISA, for those situations,” said Frieder Hansen, co-CEO of Germany’s Pyramid Computer. “Instead, for example, a plain IPP350 or 820 being used (attended), or for purposes of a UCAT using Ingenico 250 series, the third solution would be using an inspectable key-lockable option with a terminal like a 350.”
There is a perception that kiosks are always considered unattended from an EMV perspective, said Allen Friedman, VP of Payment Solutions at Ingenico Group.
“This is not always true,” Friedman said. “Some self-service implementations in attended environments where employee assistance is available, like at the grocery store, can be considered attended devices. If there is any time period where no assistance is available, then it is considered an unattended solution.”
There is also a card brand requirement for unattended devices to make a printed receipt available to cardholders for transactions above $15, Friedman said.
“Designs for kiosks intended to provide merchandise or services above that amount should include a receipt printer with their models to insure compliance,” he said.
Taking the risk
Although kiosk deployers are still asking for non-EMV compliant solutions, kiosk manufacturers seem to be coming down firm on needing EMV-compliant payment solutions for any custom deployment. New projects are likely to take EMV into account throughout the process.
On the other hand, some deployers are likely to stick with non-EMV compliant kiosks to the end of their lifespan.
“Deployers aren’t as educated on this as they need to be,” Laura Miller with KioWare said. “They think it doesn’t apply to them, aren’t aware of the risk or think that the risk isn’t high enough to warrant the additional cost.”
EMV-certified options are also still relatively limited, so kiosk providers’ preferred payments providers may not yet have an EMV-certified option for unattended applications.
“Kiosks are also expensive to upgrade to EMV due to a required change in casework to accommodate the updated EMV device,” Hudock said.
EMV & Cloud Services
EMV credit transactions thru the cloud makes things easier. Keyboard wedge changed to HID changed to USB and now changes to Ethernet. A hospital environment with a copay for example in old days would require direct integration between the check-in device and the credit terminal. Which payment processor becomes an issue along with who writes the code.Nowadays you can offload the credit portion via cloud services and all that is required on the check-in or check-out terminal is simple HTTP and JSON call for authorization. The credit device takes over, conducts the transaction (thru preferred provider) via EMV certified kernel and then notifies the check-in/check-out that the transaction is complete.
You eliminate the development cost, and the credit devices can be leased monthly to reduce the upfront cost of going EMV.
You do need an ethernet connection though.
“The kiosk industry is more fragmented than retail/restaurant,” Hudock said. “This means that there are often multiple constituents involved in delivering the kiosk that need to be involved in the upgrade process, including hardware OEMs, software developers, payments middleware providers, payment processors and installers. Kiosk upgrades tend to take a little more time and planning than retail/restaurant due to the number of involved parties.”
Some of the reluctance for kiosk deployers to adopt EMV is understandable. If the kiosk is near the end of its life cycle, a deployer may choose to ride it out until it’s time to replace the entire device. In addition, the relatively low transaction averaged for many kiosks translates to less overall chargeback risk, which in turn means less incentive to upgrade.
Should a deployer choose to skip making their units EMV compliant, though, at the very least they should place additional attention on security to minimize the possibility of fraud. Those steps could include data clearing technology and secure browsers, end session on a particular page, session timeouts and so forth. In addition, point-to-point encryption and tokens are valuable security measures. P2PE ensures that card data is encrypted at the time of card insertion and maintains that encryption until it’s routed offsite. Tokens ensure that card data is not stored locally for voids or recurring transactions.
“There is less risk of internal compromise of data for a kiosk due to the hardened nature of the casework, but the largest card data security problem facing kiosks is likely card skimmers,” Hudock said. “Because these are generally placed on top of an existing reader, the card is skimmed before security measures like encryption or EMV would have any impact. Merchants need to periodically check their kiosks to confirm that they haven’t been tampered with.”
And as EMV cards and terminals become ubiquitous, banks’ authorization parameters may evolve to limit fallback approvals.
“A kiosk operator who doesn’t upgrade to EMV may find it harder and harder to get a positive mag stripe authorization,” Englebardt said.
“Notwithstanding the liability shift, banks seek to avoid the risk of counterfeit card chargebacks that trigger replacement/reissuance costs and cardholder attrition,” he said. “So revenue erosion is an additional long term business risk for kiosk operators not adopting EMV.”
Other Problems with EMV
So you reside in U.S. and all your cards (for the last year) are the sturdier Chip cards right? And no problems since right?Well, not exactly. The process of manufacture still has kinks. Personally two of my cards have failed just due to electronic failure (both of them from Chase). So malfunctioning cards are a problem.
My Chip cards have needed to be replaced due to fraud instances twice (rarely did before). I am a low volume very restricted credit card user (except for online accounts). Why the increase of breaches?
At the end of the day, though, what’s likely to motivate deployers to upgrade their devices will be the news of a major chargeback and fine associated with a device that wasn’t EMV-compliant.
“There are beginning to be some fines but not publicized and none that would be considered punitive by any measure,” said Geoff Leopold, division manager with Heartland Payment Systems. Still, it’s likely just a matter of time before a major incident occurs.
In addition, some payment processors have begun charging their customers EMV non-compliance fees. Those fees can vary, coming as a flat monthly or annual charge or a percentage of the deployer’s processing volume.
“The bottom line is that processors and banks want you to move to EMV equipment because it’s more secure for everyone,” write Ellen Cunningham in an article on the website CardFellow.com. “If you’ve been holding off on EMV-capable equipment you may want to think about upgrading before more processors begin imposing expensive fees.”
How EMV works.
EMVCo manages EMV specifications and related testing processes. This includes, but is not limited to, card and terminal evaluation, security evaluation, and management of interoperability issues. EMVCo is a consortium with control split equally among Visa, MasterCard, JCB, American Express, China UnionPay, and Discover.
US Payments Forum — The U.S. Payments Forum (the “Forum”) is a cross-industry body focused on addressing issues that require broad cooperation and coordination across many constituents in the payments industry. Part of Secure Technology Alliance (see below).
The EMV Connection website provides up-to-date EMV migration information and educational resources. One of those is Chip Cards Facts-at-a-Glance. It is now US Payments Forum.
EMV Resources page of the Card Acquiring Service (CAS). Offers information and links to helpful EMV information, including the federal government’s move to EMV chip and PIN-enabled card acceptance.
Secure Technology Alliance — The Alliance brings together leading providers and adopters of end-to-end security solutions designed to protect privacy and digital assets in a variety of vertical markets.
A Discouraging State of Affairs – what has happened to the Global Entry Kiosks?
I have previously written about the impressive Global Entry kiosks, more than 500 having been deployed by the US Customs and Border Protection (CBP). These units, built by Kiosk Information Systems with software developed by the US Government, are installed at 43 US airports, seven Canadian airports and the following international airports: Abu Dhabi, Aruba, Dublin, Guam, Nassau, Saipan and Shannon. They allow passengers who have enrolled in the Global Entry program–an expedited clearance for pre-approved, low-risk travelers upon their arrival in the United States—quick access through the Customs area through automatic kiosks. The program frees these passengers from filing out a paper Customs entry form; all required information is produced at the kiosks, theoretically a significant time-saving system.
At airports, program members proceed to Global Entry kiosks, present their machine-readable passport or U.S. permanent resident card, place their fingerprints on the scanner for fingerprint verification and complete a customs declaration. The kiosk issues the traveler a transaction receipt, complete with the passenger’s passport photo, and directs the traveler to a CBP agent and then on to baggage claim and the exit.
Travelers must be pre-approved for the Global Entry program. Called the Trusted Traveler program, all applicants must undergo a rigorous background check, followed by an in-person interview before they are permitted to enroll. The cost is $100.00 for a five-year pass.
At least that the way they were supposed to work. Previously, when I accessed the kiosks at airports including Washington Dulles, LAX, Philadelphia and Miami, the system was a pleasure to use. Although there were some minor glitches (the software did not show passengers how to insert their passport to initiate the process) that required a few attempts to get it right, it was fast and easy to operate.
Dulles International Airport was one of the first airports to test the kiosks; it is the jumping-off point for dozens of international flights. Like highways, airports have rush hours.
At Dulles they are from 7:00-9:00 am (for California flights) and again from 3:00-6:00 for California flights as well as for the dozens of Europe-bound flights. When we arrived after a flight from Munich, it was 3:15pm and the International Arrivals Hall was packed. There are signs directing Global Entry passengers to a special line in order to use the kiosks.
This is a welcome diversion from the hoards of non-registered passengers who have to encounter extremely long lines to go through Customs, especially during that 3-6pm rush hour window.
We quickly saw that almost all of the 30+ kiosks were in use. When one became available, I went to use it. I then saw that the previous user had abandoned the session midway through; the error message on the screen revealed that fact.
There was no way to start over so I waited for another kiosk to become free. It became apparent that many of the kiosks had suddenly become available. (This was because so many of my fellow-passengers were experiencing the same performance issues as I was.) I tried a kiosk and followed the instructions to insert my passport to begin the session. The kiosk was unable to read my passport so I tried again. No luck.
At this point, I moved over to a second kiosk to start the process again. But again the software could not read my passport. On to a third kiosk. This time it appeared to read the passport page with the barcode. Quite a bit of time elapsed before I received a screen message saying that I was not a registered Global Entry user and therefore could not use the kiosk. This clearly was in error. (I had registered for Global Entry two years ago)
Growing more annoyed by the minute, I then moved on to a fourth kiosk. At long last, success! The passport was read and accessed the database where my Trusted Traveler information was stored. The system also recognized the flight on which I had just flown back to the U.S. At this point, the system asks the same questions that one encounters on the paper Customs form. These include: Are you carrying more than $10,000 in cash? Are you bringing fruits and vegetables into the country? One nice touch is that it allows you to select the “No” button if all of the answers to the questions are No. When the form is filed out, it appears on the screen with the user’s passport photo on top. If all of the information is correct, you touch the Print button and the paper customs declaration slides out of a slot in the kiosk.
I then took the form to a customs official who stamped and then retained it. I asked him if my experience with the many unreliable kiosks was normal or an aberration. He assured me that my frustrating experience was par for the course. Note: the majority of users who had experienced similar problems had given up and moved over to the long line to fill out a paper declaration and have the CBP official examine and stamp it.
Attempts to reach personnel at the US Customs and Border Patrol have so far proven unsuccessful. Without proper maintenance on these units, the future does not bode well.
The numbers of passengers who quickly gave up trying to use the kiosk and went directly to the regular customs line was disheartening. It’s a sad commentary on a once-impressive (and easy to use) kiosk deployment that had really provided Service to the Citizen.