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What You Need To Know About EMV Tip Adjustments

What You Need To Know About EMV Tip Adjustments

It has been almost two years since the original EMV liability shift took place in October 2015, and merchants and consumers are becoming more familiar with EMV payment methods.

Many merchants have started to switch over to EMV-compliant payment systems, but some merchants have yet to make the upgrade. Unfortunately, misinformation and misunderstandings about EMV may be partly responsible for the delay.

One area of concern for merchants in the food and beverage industry is the way tipping is handled in an EMV environment. The tipping procedure can change with full EMV implementation, and the process may be a confusing one – especially for staff accustomed to handling transactions in a specific way. But at MiCamp Solutions, we’re working to reduce friction at the table.

How Tipping In An EMV Environment Works
For many merchants accepting EMV payments, the tipping process hasn’t changed and settling a check follows the format that servers are accustomed to. If merchants verify payments using a traditional EMV-enabled chip card reader that uses chip and signature, tips can either be included in the authorized amount or added in later. It all comes down to how a merchant verifies a customer’s payment method.

If payment is being authorized via a signature on the receipt, then tips can be added to the final total after the customer has paid. Verifying payment via chip and PIN using a pay-at-the-table solution requires tips to be included in the final authorized amount because the PIN is used to verify the total amount for payment. However, with signature, the signature acts as the verification and the customer can add a tip to the receipt after the payment has been made.

How Restaurant Merchants Can Prepare For This Change
Adopting EMV-compliant technology doesn’t have to be complicated. Merchants can keep the systems they know and like, while servers can settle checks using the same processes they’ve used for years. So merchants gain an extra layer of payment security and protection against data breaches, while servers and customers continue to interact as they’ve always done.

To find out more about EMV compliance, get in touch with us today by calling 800.396.0248 or emailing marketing@micamp.com.

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