BusinessConnection

Exclusively for Tri Counties Bank Corporate and Business Clients

SPRING 2015

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If your business accepts in-person credit and debit card payments from customers, have you made the switch to EMV terminals yet? A big

change is coming in October, and using EMV (which stands for Europay, MasterCard, Visa) terminals will protect you from liability for counterfeit fraud, should it occur in any of your card transactions.

Effective Oct. 1, 2015, Visa and MasterCard will no longer bear the liability for fraud unless the counterfeit transaction takes place with an EMV chip card at an EMV terminal.* Instead, the liability will fall on either the merchant or on the issuer of the card, if it’s not an EMV chip card (sometimes called a smart chip card). The new policy assigns liability for counterfeit fraud to the party that has not made the investment in EMV chip cards (issuers) or terminals (merchants).

Other areas of the world, including Europe, Asia, Canada and Mexico, have been using cards with embedded microchips for years, but adoption of the technology has begun more recently in the United States. Countries where EMV technology has been employed have seen significant reductions in fraudulent transactions. The EMV technology offers superior protection against fraud because the chip generates a different, single-use code for every transaction. Chip technology greatly reduces a criminal’s ability to use stolen payment card data by introducing dynamic values for each transaction.

WHAT IT MEANS FOR YOUMany merchants already have terminals with a slot for chip card acceptance, but it may not be activated. In that scenario, you may need only a minor software download from your payment card processor, and your costs may be minimal. Other businesses may need new terminals, which may cost a few hundred dollars. If purchasing new terminals is too costly, you might consider leasing the equipment. When thinking about costs, it’s important to consider the potential cost of counterfeit fraud if you don’t invest in EMV technology.

EMV terminals require more frequent updates to software and EMV-specific parameters than do traditional terminals. For merchants with multiple locations, it’s usually worth the initial investment to purchase centralized terminal management software that allows you to update terminals remotely. It can help you prepare for continued EMV maintenance requirements and enhancements, particularly as innovation continues in the market.

TAKE ACTION TO PROTECT YOUR BUSINESSContact our experts in the Merchant Card Services department at Tri Counties Bank for answers to your

questions about EMV technology and how it will help protect your business. We can get you ready for the Oct. 1 deadline! Call (800) 922-8742 today.

* An exception is made for automated fuel dispensers (AFDs). The shift in liability for transactions at AFDs will occur Oct. 1, 2017.

Don’t Let Fraud Liability Fall on You

Time Is Running Short to Upgrade Card Terminals

The Payment Security Task Force expects that 575 million payment cards will be EMV-compliant by the end of 2015.

Business Connection Spring 2015

Could your small business survive an attack by hackers? According to a National Small Business Association survey, 44 percent of small businesses were attacked in 2013, and the average cost was $8,700.

Nearly 60 percent experienced a business interruption as a result of the incident.*

WHAT’S AT STAKE?In the event of a suspected data breach, your first move may be to get an IT expert to check your networks and find the source of the attack. The rest unfolds like a bad dream:

1 If you have to shut down your website, even temporarily, you may lose customers and revenue.

2 If a data breach involves customer data, you may be required to notify each person or business affected, which further adds to your costs.

3 You may lose business if customers lose confidence in your ability to keep their information safe.

4 Your company may also be liable for lawsuits related to the breach brought by customers.

PROTECT YOUR BUSINESSNothing is hacker-proof, but there are inexpensive ways to protect your data on a smaller budget. The following steps can protect against cybersecurity threats and/or minimize risk from attacks that get through:

Install firewalls, antivirus and anti-malware software. Use an email provider with proper security systems. Bring in cybersecurity consultants to identify the best ways to protect computers and websites. Provide training to employees on cybersecurity and what they can do to help minimize risk. Remind them to avoid following suspicious links in email, social media posts and online. Consider using a third party vendor to process credit card orders to avoid handling and storing customers’ credit card information by your organization.

* Source: National Small Business Association, 2013 Small Business Technology Survey.

Do You Need Cyberliability Insurance?

Depending on the risks you’re facing and the size and type of your business, cyberliability insurance may be worth the cost. It is an insurance policy that covers hacking incidents and/or data breaches resulting from electronic vulnerability or mishandling of financial information on paper documents. Cyberliability insurance typically pays for:

Costs associated with notifying customers who have been affected. Costs for providing credit monitoring services to customers, if needed. Regulatory fines or penalties related to a security data breach. Liability coverage for lawsuits filed against your company.

Cyberliability coverage may be added to a business insurance policy or purchased on its own depending on your needs. To learn more, contact your insurance agent to discuss your options.

Hacking Is a Big Risk for Small Business

Nothing is hacker-proof, but there are inexpensive ways to protect your data on a smaller budget.

Being self-employed can come with many perks — you may set your own hours, pick your own clients or choose your colleagues. But, there’s one area where being self-employed is often more of a detriment — retirement savings. Self-employed people are more likely than traditionally

employed individuals to save for retirement sporadically, potentially jeopardizing their well-being later in life.* Thankfully, there are a variety of savings vehicles to help you create a solid foundation for retirement. Here are some of the most popular options that you can use if you’re self-employed to be sure you’re on solid ground when it comes time to retire.

KNOW YOUR OPTIONSSolo 401(k). A solo 401(k), also called an individual 401(k), is very similar to a traditional 401(k). But, only individuals who are sole proprietors with no employees, other than a possible spouse, qualify. Since there is no matching contributor, the IRS allows you to make extra contributions up to 25 percent of your business’s earnings.**

SEP IRA. A Simplified Employee Pension, or SEP IRA, is suitable for both businesses with employees and solo entrepreneurs. In this plan the employer contributes to the fund, not the employees. While this plan can be used for those with employees, it often also makes sense for single-person businesses.

SIMPLE IRA. The Savings Incentive Match Plan for Employees (SIMPLE) IRA shares similarities with the SEP IRA. But, in SIMPLE IRAs, employees can make contributions along with employers. Employers are required to make matching contributions up to 3 percent of eligible employees’ income each year or contribute 2 percent of all eligible employees’ compensation, regardless of whether they make contributions on their own.

MAKE IT HAPPENOf course saving for retirement when self-employed is not always easy. Self-employed individuals often pay themselves last while growing their business. But here are some rules to follow that can help you plan for your future:

Know how much you need to contribute. Many experts recommend saving at least 15 to 20 percent of your annual salary toward retirement.

Don’t put it off. Saving for retirement is not something that can be easily put off until later. Saving earlier allows accounts more time for growth, meaning you’re less likely to be playing catch-up right before retirement.

How to Save for Retirement When You’re Self-Employed

Be consistent. Think of your retirement savings as a regular business expense rather than an afterthought. Consider it a necessary part of being self-employed and plan for it accordingly.

HERE FOR YOU AND YOUR FUTURETri Counties Bank has investment professionals who are ready to guide you to create a solid retirement strategy. Don’t let inconsistency put your future at risk; contact our team today at (866) 822-4753 to help you prepare for life after retirement.

* Source: Employee Benefit Research Institute. 2014 Retirement Confidence Survey. www.ebri.org.

** Contributions are capped at $52,000 for 2014, and will be indexed to inflation in future years.

Investing involves risk, and there is no assurance that any strategy, including asset allocation, will ultimately be successful or profitable nor protect against a loss. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Tri Counties Bank and not necessarily those of Raymond James.

(800) 922-8742 TriCountiesBank.com

Thankfully, there are a variety of savings vehicles to help you create a solid foundation for retirement.

Securities are offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, an independent broker/dealer, and are:• Not insured by bank insurance• Not insured by FDIC or any other government agency• Not deposits or obligations of the bank• Not guaranteed by the bank• Subject to risks, including the possible loss of principal

Tri Counties Bank (TCB) and TCB Investment Services are independent of Raymond James.OSJ: 780 Manrove Ave. Chico, CA 95926 P: (866) 822-4753

This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to this organization are provided for information only. No endorsement is implied. Images may be from one or more of these sources: ©iStock, ©Fotolia. ©2015 Bluespire Marketing | bluespiremarketing.com

7 Ways You Can “Mobilize” Your Business

While not a big threat as of yet, hackers are beginning to look at mobile devices to spread malware, so make sure to check out your antivirus options.

Is there anything you can’t do with a smartphone or tablet these days?

Laptops have become relics as small-business owners have noticed just how invaluable mobile devices are, with 94 percent of them

using their smartphones to conduct their affairs. This has resulted in substantial savings in terms of both time and money, according to a recent poll.* You can use your tablet or phone to:

Show product video or photos to potential clients. Map out the most cost-effective delivery routes. Manage receipts and accept payments while traveling. Conduct meetings with Skype or similar programs. Keep data in a central, “access from anywhere” location. Run social media pages to promote business. Upload and edit important documents. Perform banking functions and keep track of finances. Check out our mobile banking options at TriCountiesBank.com.

One thing to keep in mind: While not a big threat as of yet, hackers are beginning to look at mobile devices to spread malware, so make sure to check out your antivirus options. Also, be sure to have security measures in place that allow you to remotely erase a device should it be lost.

* Source: AT&T Small Business Technology Poll 2014.