Your credit cards are changing, although probably not as quickly as some people had originally thought. Tomorrow is the self-established deadline that the credit card issuers (Europay, Mastercard and Visa) put on themselves for the roll out of the EMV chips in their credit cards. So, what do you need to know about these new cards and the new process? We’ve got the details about what’s changing…
First of all, what is an EMV card/chip?
An EMV card is a credit card with a small chip on the front of it – designed to replace the magnetic stripe that credit card companies have been using for decades. The EMV chip establishes a digital conversation (sometimes referred to as a “handshake”) between your credit card and the transaction terminal in order to authenticate the transaction. The benefit: EMV chips can’t be copied or counterfeited in the way that magnetic stripes have been in the past, so credit card companies are hoping for less fraud.
How do you use the EMV card?
If you have an EMV card already, you’ll need to figure out if the retailer you’re at is set up to use EMV cards yet. Many retailers are still in the process of establishing their process for the new cards, putting in terminals that accept them, etc. However, if you already have an EMV card from your credit card company and you happen to be in a retailer that has an EMV card reader, you’ll notice some big differences. First, you have to wait until the end of a transaction in order to put in your card. Previously, you were able to swipe your card before the cashier was finished ringing you up, but that is changing. Now you’ll wait until the transaction is complete, then you’ll insert your card into the terminal and leave it there for several seconds (so the chip and network can communicate) until the transaction has been approved. This new process may take a little getting used to, but it will create a more secure transaction and help protect you against some fraudsters.
What’s the October deadline all about?
The October 1, 2015 self-imposed deadline was set up by the big credit card companies (Europay, Mastercard and Visa) to establish a timeline in which the gradual technology switch would happen. The deadline will mark the shift in liability for fraud that is designed to encourage retailers to move faster on their switch. Normally credit card issuers (Europay, Mastercard and Visa) are responsible for the costs if you experience credit card fraud. After October 1, retailers that haven’t upgraded to EMV point-of-sale terminals will be liable for fraud that occurs at their stores. However, card issuers are still going to be liable for any fraud on cards that don’t have the EMV chips in them yet.
What if I don’t have an EMV card?
Not a problem. Your credit card company or bank may not be ready to roll them out to you just yet. While October 1 is deadline, the process has been slower than the credit card issuers originally thought. You can always contact your credit card company to find out when their EMV cards will be rolled out, or you can wait for your new card to come in the mail. At the Callaway Bank, we plan on rolling out our EMV cards sometime next year.
What about debit cards?
The shift in technology for debit cards is basically up to the financial institution.  At The Callaway Bank, our debit cards are currently not expected to switch to the EMV technology until sometime next year. We will make sure to give our customers plenty of notice on when to expect that switch.
If I don’t have an EMV debit card, am I going to be liable for any fraud on my Callaway Bank account?
Absolutely not. Our customers are still fully protected by us in regards to any fraud on your Callaway Bank account. So even if your card information is stolen, we will cover any losses.

Financial scams targeting customers over the age of 60 have become more and more prevalent over the past several years.  Why?  Because these individuals have a significant amount of money sitting in their accounts.  Let’s take a look at some of the most common scams to avoid:

Beware of little expenses. Even a small leak will sink a great ship.” – Benjamin Franklin.

Business profit has a tendency to disappear when your company experiences challenges in various areas.  Owners often think the cause of financial distress in their business comes from three primary issues; low cash, low gross margin, and or low net profit.
However each of these are not the problem, they are just a symptom.  Companies suffering from low cash, low gross margin, or low net profits will have other hidden financial problems that are causing these issues.  The challenge is in determining the cause behind the symptom.  Could it be too much inventory or not enough?  Maybe its low productivity or poor pricing.  Maybe it’s high hidden costs, or all of these problems and more.  Each of these issues will cause business profit to slowly erode, or leak out from your bottom line.  How can you as the business owner best determine the cause(s) to these symptoms?  After all, if you don’t know the source of the leak how can fix it?

Road Map To Discovering Business Profit Leaks

What if you had a road map that identified the actual problems?  Yes we’re changing metaphors, but nevertheless what if you had a proven process that worked like a road map to guide you from the symptoms back to the cause of the symptoms?  You could then address what is causing your low cash, low gross margin, and or low net profit.
In our upcoming Profit Mastery training we will present such a road map that provides a “big picture” overview, while at the same time leading you through a process to help pinpoint from where the problems are coming. This cause-and-effect analysis is an invaluable resource for owners in stopping profits from leaking out from the business.  This unique tool is one of several that will be provided which help you understand the financial drivers of your company, and how to fine tune them to generate greater profits.  You’ll even learn why net profit doesn’t always result in cash on hand.
This program is available to any business in the area.  Our goal is to provide you tools and insight to strengthen your company and manage it better.  We believe doing so benefits not only your business, but the community as whole.  We hope you’ll join us on October 15 – 16, 2015 at the Hilton Garden Inn, in Columbia, Mo.
Click here to learn more about how this training will help strengthen your business.  It will be the best investment you make in your business all year.

The Callaway Bank | With You for the Moments That Matter™

As companies struggle to reduce costs, find new sources of revenue, and operate more efficiently, they sometimes forget the basics.  There are 10 things that every business owner should consider as part of the foundation for making their company stronger.  Below are 3 of the 10:

1. Know your key drivers and manage them: Keep a careful eye on areas that affect cash flow: accounts receivable collections and inventory turnover. How are you doing compared to past performance and your peers? Watch key areas that affect profits, net and gross margins, labor and fixed asset utilization.
2. Understand and use break-even analysis: Do you know your contribution margin? If not, you won’t know how much more you need in sales when costs rise or prices fall. At the same time, you’ll know how much to cut when sales fall and can analyze the need for expansion or capital decision.
3. Monitor accounts receivables closely: Process invoices immediately. Distribute an outstanding accounts receivable statement weekly and take action on late accounts immediately.  Start with a polite but firm personal call and don’t get off the phone without a commitment to a payment date. A few days improvement in collections will make a huge difference in cash flow.

In our upcoming Profit Mastery training, business owners will learn all 10 of these foundational items in addition to priceless tools for making their business more profitable.  Interested?  Click here to learn how this training will help strengthen your business.