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| Hospitality Users Discussion Forum for Chip and PIN Chip and PIN is a very hot subject in all environments where cards are accepted for payment. However the introduction of Chip and PIN into the Hospitality environment will present many more challenges than it does in retail. Because of Kilrush Consultancy's experience in overseeing the integration of EFT application into Property Management and Food and Beverage Systems, it foresaw the difficulties looming for the implementation of chip and PIN in these systems. With Telectronics Systems Ltd, Kilrush Consultancy Ltd. founded the Hospitality Users Discussion Forum for Chip and PIN in Northampton in 2003.
The forums are supported by the PMO – The body responsible for the implementation of Chip and PIN in the UK. The Four card schemes American Express, Diners Club, MasterCard and Visa and the main acquirers support the forum as do the hospitality association the BHA, BII and ALMR. The purpose of the forum is to foster an atmosphere where the hospitality users share information so that the card schemes and acquirers can better understand how the hospitality operation works. Our aim is to ensure that the processes in hospitality can be accommodated and that the schemes and acquirers will marry the hospitality Ways of Working with their Chip and PIN requirements. Forum 1 brought 60 Hospitality Users face to face with the PMO, Card Schemes and Acquirers. A questions and answers session was facilitated so that the banks could understand the processes involved in accepting payment in hospitality and so that the users could understand the Chip and PIN transaction and what is expected to change when Chip and PIN is implemented. Much of the discussion in the first forum was around the impact implementing chip and PIN would have on operational processes. There was concern about pre-authorisation, top up, express checkout and post departure changes. There was even more concern it was discovered that the standard practice of pre- authorising or taking a swipe of the card to help guarantee the tab in the food and beverage operation, is not in fact allowed by the card schemes. Forum 2 attempted to review questions and answers from the first Forum and view the chip and PIN hardware available and attempted to update the Users with what is happening with the changes to Recommendation 15. Recommendation 15 is the paper issued by the PMO to describe the customer and operator experience relating to card acceptance at the Point of Sale in the Hospitality environment. Forum 2 also looked at ways in which the business case for the move to chip and PIN can be made. There is no doubt, that a number of establishments are finding it extremely hard to cost justify the move to chip and PIN. However, it is clear that the move can be justified by the addition of
value-added services. Value add services include Dynamic Currency Conversion, Gift Cards, additional screening on Internet and other customer not present bookings, e-top up etc. Forum 3 brought the 3rd Party EFT suppliers, the Chip and PIN device suppliers and the Hospitality EPOS suppliers together with the Hospitality Users. The card schemes and acquirers also attended. The forum is totally focused on empowering the hospitality users with knowledge, such that they can make informed decisions as to what solutions should be used and how to implement the technology. Through the Hospitality Users Discussion Forum the users have a voice and thus can negotiate for what they think and know is best for their business. This gathering represents 60% of managed houses and 40% of hotel groups. The retailers were able to do that over the last 18 months and made a big impact on how the technology was implemented in retail. They discussed their processes with the schemes and acquirers and together worked through the processes, in partnership, for the benefit of both. The Hospitality Users Discussion Forum aims to do the same. That process started when the forum influenced the changes to Recommendation 15. A sub group from the Hospitality Users Discussion forum is now working with the PMO to look at further changes to recommendation 15 as part of the forums objective to marry the operation of Chip and PIN into the ways of working within the hospitality industry. For the area of most concern- running a tab, Telectronics and Kilrush proposed a process and a sub-group was formed to agree the process proposed. We are pleased to say that the agreed process for handling tabs in Food & Beverage, was put forward by the sub-group at a meeting with the PMO on March 29th and that the process proposed was agreed in principle. The PMO and acquirers and schemes, now need to agree the technical process for this. Hospitality has traditionally not been well looked after with regard to options for integrated card solutions in their EPOS equipment. We could see that the industry was in even more danger of been left completely exposed with the implementation of Chip and PIN. There are still many hospitality Users who are not fully aware of the particular difficulties surrounding the implementation of Chip and PIN in their industry. Addressing this was one of the drivers in starting the forum. The Hospitality Users Discussion Forum is a forum created for the users. The information now available about chip and PIN, the issues surrounding its implementation in the hospitality environment and proposed changes to Recommendation 15 are all as a direct result of the input from the Hospitality Users who attended the Northampton Forums. The efforts of the 60+ users in attending and participating in the Forums in Northampton, will ensure that the changes proposed so far are fully considered. As a consequence, the specific challenges that face hospitality in implementing Chip and PIN are being addressed, and the ways of working within the hospitality industry will be married with the banks requirements for the implementation of Chip and PIN. It will also ensure that Chip and PIN is embraced by the whole hospitality sector. |
