Are Merchant Signatures Still Required with Lightspeed Payments?
With the new Verifone P400 terminals for Lightspeed Payments, customers are no longer being asked to sign the terminal for credit card transactions. This has left many merchants wondering what the implication is for their own businesses, insofar as ensuring the maximum security for credit and debit transactions.
Firstly, it is important to note that Lightspeed Payments is compliant with payment card industry data security standards (PCI DSS), which were established by the PCI Security Standards Council (SSC) to protect cardholder data. We take great care to ensure the network, by which you process said payments, has robust protection against malicious actors.The hardware we provide for Lightspeed Payments is PCI compliant and we maintain a PCI compliant platform, for payments processing. (More information on our compliance can be found in this article: https://retail-support.lightspeedhq.com/hc/en-us/articles/360016052733-About-PCI-compliance)
The introduction of PCI DSS means that customer signatures play an ever-shrinking role, in protecting credit and debit payments. Indeed, an EMV chip card read by a PCI compliant payment terminal is more effective than a signature, as EMV chips cannot be forged. In fact, chip cards have advanced antifraud technologies to authenticate transactions – such as tokenization and biometrics – that make credit card signature requirements obsolete.
The result of these measures is a dramatic drop in malicious credit and debit related activities, taken against merchants. Since 2015, EMV-compliant merchants have seen counterfeit fraud drop 80%. (source: https://www.pymnts.com/news/security-and-risk/2019/visa-emv-chip-counterfeit-decrease/) In light of this, it is easy to see why the four major US card brands (Visa, MasterCard, American Express, and Discover) are moving away from requiring customer signatures, for credit and debit transactions.
This is not to say that customer signatures on receipts have become completely obsolete. They can still be useful for certain small businesses, such as restaurants that use receipts to collect tips or service professionals that use them as proof of approval for work orders or for acceptance of completed work. Merchants wishing to add an extra layer of protection to their transactions may wish to consider having their clients sign a credit card authorization form, which includes a detailed list of purchased items or services, as well as the return policy. (We have made a sample form available, under this link: https://retail-support.lightspeedhq.com/hc/en-us/articles/360039009454-Credit-Card-Authorization)
Moreover, it is still possible to print a customer copy of receipts, for credit and debit purchases, using the Receipt Setup options, found in your Retail account. More information on this can be found here: https://retail-support.lightspeedhq.com/hc/en-us/articles/360036483513-Setting-up-sales-receipts
We also provide pointers, via our Help Pages, for protecting your business against disputes. (https://retail-support.lightspeedhq.com/hc/en-us/articles/360007295334-Preventing-chargebacks)
In our ever-changing world of technological advancement, it is important to take the proper steps to protect your business and your clientele from malicious actors. However, it is equally important to remember that Lightspeed is here to help guide you, so as to provide you with the optimal solutions for your business. If ever you’re unclear or require assistance, please feel free to contact our support team, who is available 24 hours a day, seven days a week. We can be reached by phone, at 1-866-932-1801, option 1 for Support, followed by option 2 for Retail. We can also be reached using the Chat feature, found in the Help menu of your Lightspeed Retail point of sale.