After four months of chargebacks, many convenience store operators who have not upgraded their fuel dispensers to accept EMV chip transactions are suffering from escalating chargebacks. What was once less than a few hundred dollars per month in some cases has exploded into thousands of dollars per month of unbearable penalties.
The fees have sparked new energy for complying with the Outdoor EMV Liability Shift. Convenience store operators should be aware that the leading POS providers require the use of certified Managed Network Service Providers (MNSP) to enable helpdesk secure remote access, software updates, and other services.
When it comes to choosing an MNSP, consider the following factors:
- Total Cost of Ownership (TCO) – Some MNSPs will offer an extremely low entry price point, but then make it up with incremental charges. (e.g. additional store level charges for VPN, Secure Remote Access, config changes, etc.).?In some cases, the annual TCO price will be more than double the initial baseline service fee.
- Cybersecurity Credibility – To achieve lower price points, some MNSPs use home-grown cybersecurity solutions that have not been thoroughly vetted by trusted market experts.?While retailers may not have in-house experts who are able to confidently assess the integrity of specific cybersecurity offerings, they can review assessments by credible 3rd parties, such as Gartner.
- ?PCI compliance – In the unfortunate event of a data breach, the card companies will seek to determine if the retailer met basic PCI-DSS requirements, such as network scanning, daily log analysis, and employee cybersecurity training. If the operator is found to be non-compliant, there will be no safe harbor and they will be held fully responsible for the associated financial losses. C-store operators should work with the MNSPs to ensure their full compliance with PCI-DSS standards
- Service Level Expectations – While many MNSP offer SLAs, a high-quality customer experience is always preferred over some token, pre-negotiated compensation.?Consider asking your MNSP candidates to provide actual operational reporting on the services they have provided to other customers of your size.
- Technology Competence- MNSPs vary widely in their use of manual labor versus automated technologies to provide their services. Manual labor does not scale and imposes a limit on their future ability to perform.?Employing advanced technologies, such as AIOps, enables the MNSP to increase the quality of their service offering, while reducing operational costs.
- ?Scope of solutions – Stores within a single brand vary widely in terms of their profitability. While some stores require the lowest cost available, others are able to invest in their business and want additional services (including managed broadband, Wi-Fi, digital signage/menuboards, VoIP, employee training, etc.)?Consolidating a portfolio of services under a single vendor will dramatically reduce cost while expanding capabilities.
- Future Roadmap – As the c-store market rapidly evolves and becomes increasingly digital dependent for effective customer engagement, make sure your vendors will not be left behind. Ask your vendors to provide their near-term plans for addressing changing market requirements.?
Choosing an MNSP not only enables the C-store operator to address their POS provider's requirements for Outdoor EMV, but it can also provide a competitive advantage in evolving market conditions.
“With a background in both engineering and human/organizational studies, Tim Tang has degrees on both sides of his brain. With over 25 years of professional experience in developing enterprise solutions, Tang is keenly interested in the intersection of technology and humanity. As a director at Hughes, he studies the market and technology trends across various industries, including restaurant, retail, banking, and finance.?As an active contributor to numerous industry associations, Tang is an influencer in the digital transformation of business.”
For more industry thought leadership, please visit:?https://business.hughes.com/timtang
