Hospitality industry unprepared for chip and PIN transformation

The hospitality industry could be thrown into chaos next month with one in 10 customers still not using chip and PIN credit card payments, which become mandatory in Australia on August 1.

Wait staff could also see their earnings from tips plunge by double digits, if the phase-out of credit card signature payments in Britain is anything to go by.

According to Tyro Payments, uptake of chip and PIN payments in Australian small businesses rose nearly 20 per cent to 78 per cent between November last year and June 2014.

But the hospitality industry lags behind, with only 66 per cent of customers choosing chip and PIN over signatures.

“Imagine cardholders searching in panic for cash, when they can no longer sign," Tyro Payments co-founder Andrew Rothwell said.

"The simple act of paying for a meal could ruin the entire dining experience."

However, venues can mitigate the impacts of the legislation with 'pay-at-table' mobile integrated EFTPOS terminals.

'Pay-at-table' terminals allow customers to add tips onto their bill with a credit card straight away, while also reducing the need for busy waiters to go back and forth between tables and tills.

Meanwhile, local start-ups Clipp and OneTab have come up with smartphone app solutions that process restaurant and bar tabs, which should also come in handy for venues when the signature payments are phased out.

Source: The Australian - 3 June 14