North American Bancard Adds Tip Adjust Feature to Limit EMV Chargebacks in the Restaurant and Service Industries

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Solution Also Puts the Power of Tipping Back in the Customer’s Hands

One of the biggest drawbacks of EMV for the restaurant and service industry has been the inability for customers to leave a tip prior to the completion of the sale. In an effort to alleviate this frustration for both its merchants and their customers, payment processor North American Bancard Holdings, LLC (NAB), has added a new feature, called tip adjust, to select EMV-ready Ingenico and VeriFone POS terminals. This new feature addresses one of the biggest limitations of EMV for the restaurant and service industry – the inability for customers to leave a tip separately from the total purchase price.

Tip adjust allows customers to add a tip on the receipt after the EMV transaction is completed, alleviating one of the oversights of EMV, and putting the ability to leave a tip back in the customer’s hands. Until now, if a restaurant patron wished to leave a tip for his or her server, the tip amount would have to be added to the total bill, which would then be presented to the customer for a signature. This created an awkward moment, as it required the server to ask the customer if he or she wanted to leave a tip before completing the sale. This also resulted in an increase in chargebacks, as some customers disputed the conflicting amounts on their credit card bills.

The new tip adjust feature not only returns the decision of whether to leave a tip and how much to the customer, but it also helps to reduce chargebacks and stops unnecessary disputes that waste merchants’ time and hurts profits. Tip adjust creates a payment experience similar to the way it was pre-EMV – the tip line is printed on the customer’s receipt, allowing him or her to choose how much of a tip to leave, as opposed to the server asking then having to add it to the total bill. By separating the tip from the other items purchased, the chances of a chargeback are reduced, as there is no disputing the intent of the additional charge. Tip Adjust is available on Ingenico’s iCT220 and VeriFone’s Vx520 and Vx680 terminals.

“We listened to our restaurant and service merchants regarding the increasing number of EMV chargebacks since the liability shift and we made adding tip adjust to our stable of features a priority, as it benefits both our merchants and their customers,” said Terri Harwood, chief operating officer at NAB. “Tip adjust creates a receipt with a separate tip line for the customer to fill in, just as in the past with magnetic stripe cards. It’s a small thing, but the benefits are huge, and it puts an end to unnecessary disputes that can have a detrimental effect to the merchant’s bottom line.”

About North American Bancard Holdings
North American Bancard Holdings, LLC (NAB) is committed to helping businesses prosper with a full suite of product offerings. NAB and its subsidiaries provide business solutions in four primary segments: credit processing, ecommerce/gateway, mobile payments and cash advances. CEO Marc Gardner founded North American Bancard in 1992 with the vision of building an organization that delivers innovative technology and superior service. This business-for-business philosophy has helped the company grow from just one employee with no revenue into what it is today – North American Bancard Holdings, LLC, with more than 900 employees and 3,000 Sales Partners, processing more than $34 billion annually for over 250,000 merchants nationwide. For more information, visit http://www.nabancard.com.

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Brooke Tajer
North American Bancard Holdings, LLC.
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