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Restaurant is Nevada's First to Serve Up Pay-at-Table Technology, Las Vegas Sun

PIN Based Debit is the Fastest Growing Payment Method - First Data Releases May 2010 SpendTrend

Consumers continued to favor PIN debit over other types of payment. It's being used more and more wherever possible in convenience, grocery and retail stores. We'd like to see restaurants begin to accept PIN debit. This requires handheld wireless terminals be brought to the table or be available at the counter for customers to enter their PIN. It's the most secure transaction today (and often the least costly transaction for the merchant).

May 2010 card-based transactions change from 2009

For more detail see First Data Releases May 2010 SpendTrend

Merchants Win Debit-Card Fee Battle; Could Save Stores Billions

Retailers stand to reap billions from the financial-overhaul legislation being finalized by Congress, possibly giving them a long-sought victory by slashing the "swipe fees" that credit-card companies charge merchants for every debit-card transaction.

See the Wall Street Journal article.

PIN based debit up to 7.5 times more secure than signature debit. Debit penetration continues to outgrow credit.

The debit market remained robust during the second year of the economic downturn and is projected to grow strongly in 2010. The study finds that much of the growth in debit use is in small-ticket transactions, suggesting that more consumers prefer debit over cash. With respect to fraud losses borne by issuers, PULSE found that "average signature POS fraud losses increased 43 percent last year from 5.2 basis points (bps) to 7.5 bps, and PIN POS fraud losses rose by 24 percent from 0.8 bps to 1.0 bps."

PULSE 2010 Debit Issuer Study

PCI Compliance

In Data Leaks, Culprits Often Are Mom, Pop Wall Street Journal

Retail Solutions Providers Association: Small Merchant Fined for Non-Compliance

Credit Card Fraud

European restaurants for years have used wireless handheld terminals to reduce the risk of credit card fraud and identity theft. Credit cards never leave the site of the customer. No chance of anyone swiping the card through a card swipe (you can buy on eBay for $50!) or simply writing down the card information. Over 800,000 of these terminals are in use outside of the USA.

One thing diners never want to think about is the possibility that it can be very easy for waiters to swipe credit cards. After all, where else does one completely hand over credit cards to strangers to take away into another area? Well, paranoid diners shouldn't read any further.

A Kansas City waiter is looking at 35 years in jail and a $750,000 fine after admitting to identity theft and credit card fraud. The waiter, who worked at a posh Country Club restaurant, said he swiped his customers' cards an extra time in his own "electronic device." Then the waiter/thief used the credit card numbers to buy stuff online, "including thousands of dollars worth of DVDs." Well played, sir.

Why does ensure a secure transaction matter? Ask The Cheesecake Factory and its customers.

"District Food Servers Charged in Theft of Patrons' Credit Card Numbers"

Comments from The Washington Post article:

"Definitely a risk when you go out to eat. I ate at Legal Seafood several months ago, and they brought a wireless credit card reader to the table so that my card never left my sight. ...I wish more >restaurants would adopt that system."

"Traveled to South Africa last year. Everywhere we ate they had mobile credit card machines that the servers brought to the table to swipe our card. When we asked about this, we were told never to let the card out of your sight. Makes sense..."

"In Europe, they bring the handheld credit card scanner to your table.... Sure, it won't prevent every theft opportunity, but it's still a better way to do it.

"Well this may explain what's been going on with my bank account for the past 3 years! I frequent many restaurants in the DMV area - no time for cooking - and my check card number has been hijacked SEVERAL times."

"I always get a chuckle out of people who are afraid to use their credit card online with known vendors such as Amazon, but will hand their card to dozens of different, unknown waiters."

"Any security expert will tell you that the waiter at the restaurant presents a far greater security risk."

"Twice now, on two different accounts, has the same thing happened to me. Scammers copied my card at a restaurant (once in Columbia, MD and another time in Bethesda)...Be very vigilent about keeping your card in sight. I like the idea of wireless credit card readers. Maybe all restaurants should go to that method of transaction."

Ricardo's of Las Vegas Fights Credit Card Theft: Channel 8 KGW