Australian businesses may be in strife as of August 1 2014, when PIN + chip becomes the main form of card payment authorisation for businesses across Australia.
The move will nullify signatures as a form of verification for Australian credit and debit card transactions. Restaurants will be hit the hardest with the threat of tabs going unpaid, without the customer’s PIN venues can’t charge the patron’s credit card if they leave without paying.
However, there is hope to nullify these potential problems with the app Clipp. The iOS and Android bar tab app lets customers start, manage and pay their bar or pub tab using their smartphone.
Hundreds of bars and pubs across Australia are already using Clipp because of the benefits it provides:
- Clipp’s technology integrates seamlessly with a venue’s existing Point of Sale system so publicans aren’t slugged with unnecessary, additional costs of new hardware.
- Venues are guaranteed payment on all Clipp transactions.
- Clipp is PCI compliant and will help reduce credit card fraud as sensitive credit card information stays with the customer.
- Staff are able to focus on serving customers rather than process payments at the bar because Clipp’s customers open & close tabs from their smartphones.
- Clipp gives venues full visibility on all Clipp tabs & customer purchasing data, in real-time.
- Before closing the tab on their smartphone, the customer is presented with an option of adding a tip to their order.
Greg Taylor, the co-founder of Clipp, fears that Aussie businesses won’t make necessary changes before August 1.
“The new PINwise changes are just around the corner, and businesses are slow to adapt. Most venues have 2 or 3 cards left behind the bar each night, but larger establishments could have upwards of 10, 20 or 30 cards left behind. If those customers don’t come back, venues have no recourse for recovering that revenue.
“Venues that are Clipp integrated have the ability to close tabs directly through their POS systems, eliminating the risk of lost sales and the domino effect that has on stock management and accounting. Clipp is a great solution for the hospitality industry, but many other industries will also be affected. It’s important they know what August 1 changes mean, and how they can prevent from negatively being impacted by the changes.”
Jared Merlino, owner of Lobo Plantation, a Sydney bar that uses Clipp and has won several awards in recent years, including Time Out 2014 People’s Choice Award, is worried about the negative impact on speed of service for other venues:
“The August 1 changes may have a negative impact on the speed of service. Bars and pubs may elect not to run tabs, due to the risk of not being able to close any outstanding ones at the end of service without access to the patrons’ PIN.”
“This means, without being able to leave a credit card behind the bar, patrons will need to line-up and pay every time they want to order. This will result in longer wait times for all patrons.
“Clipp eliminates these problems. Clipp communicates with the patrons bank to approve the account before any orders can be placed. Also, in the event that a customer doesn’t pay at the end of the night, or forgets to, Clipp lets venues close any Clipp bar tab through their own existing POS software. Risk is reduced, speed and efficiency increased. Got to be happy with that!,” said Jared.
Visit the Clipp website here.
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