CAPCarwash Association of PA

Thursday, September 24th, CAP will host their

Annual Golf Outing and Membership Picnic at

the Cumberland Golf Club in Carlisle, PA.

Members are encouraged to put together a

team. Vendor Members, take advantage of

this opportunity - invite operators to join your

team and spend a relaxing day on the greens.

Don’t golf? Come out for the picnic at 2:30

p.m. This outing is relaxing and geared to

appeal to every level of golfer, the novice, the

once a year golfer and the scratch golfers.

Mulligans will be avaliable for purchase, and

there will be a closest to the pine and longest

drive contest during the outing. We have cash

prizes for our 1st, 2nd, and 3rd, place teams, but

no one leaves empty-handed. Register today

by calling or emailing our office.

CAP Annual Golf Outing & Member PicnicSepember 24 th @ Cumberland Golf Club

In less than two months, October 2015, EMV will become a reality for carwash operatorsaccepting credit cards. If your business is not EMV ready, you need to take action now!

This past spring CAP explained the migration to EMV technology going into effect October2015. EMV is the technology of a chip embedded on credit cards that will transmit datamore securely, (cards will still have traditional magnetic strips.) EMV cards create aunique transaction code each time they’re used and that code can only be used once -making fraud more difficult.

Continued on page 2 See EMV Migration

Is Your Business Ready for EMVNew US Standards Require Credit Card Processing Changes by October

By: CAP Staff

We hosted one of our best annual dinners and table-top shows this past May and I want to thankeveryone who attended and participated. There wasgreat energy and some excellent discussions, asmany members came seeking informationregarding EMV migration and compliance. It is myhope that everyone in attendance found theinformation they came for as well a betterunderstanding of EMV compliance.

We hosted a panel of professionals from three areasof expertise on EMV Compliance. CharlesSouthgate - Senior Manager of Product Integrationat Heartland Payment Systems participated on thepanel on behalf of the national organization, EMVMigration Forum, an independent, cross-industrybody formed to foster broad cooperation andcoordination across many constituents in thepayments field to successfully facilitate EMVtechnology implementation in the US. BenjaminWallace, Executive VP of Operations &Technology for Orrstown Bank was a panelistlending expertise from the banking and lendingarena, including how credit card issuers wouldphase in chip-embedded cards and the legalramifications for data breaches. Nicholas Tylenda- Director, Strategic Business Development forInnovative Control Systems was able to tieeverything together on the panel by sharingindustry specific information and experiences. Thepanel offered was a wealth of information forattendees to digest, but I believe everyone left witha better understanding, in spite of the ambiguitythroughout the EMV regulations. Panelistsexceeded expectations by offering themselves toCAP members as an information resource as theynavigate their business’ EMV migration andcompliance strategy.

EMV compliance is one of numerous unknowns forcar wash businesses in PA. PA remains without astate budget. Disagreements between theAdministration, the House and Senate over taxationproposals, funding gaps and program expansionscould have a serious negative impact on bottom lineof small business. We’ll keep you posted asinformation becomes available. Knowledge is key,so my advice for members is to stay engaged, worksmart and be judicious with your resources.

CAP GOLF OUTING & PICNICCUMBERLAND GOLF CLUB

2395 RITNER HWY. ~ CARLISLE, PATHURSDAY, SEPTEMBER 24TH

PICNIC: $15 GOLF & PICNIC: $75 p/p

SPONSORSHIPSGold Sponsor - $1000I4 players, tee sign, newsletter ad,website bannerSilver Sponsor - $5002 players, tee sign, website banner

Hole Sponsor - $2501 player, tee sign

Door Prize Donations WelcomePlease indicate if you would be able to

donate items for door prizes

Register Today!

430 Franklin Church Road Dillsburg, PA 17019www.pacarwash.org

2016 CAP DuesDue Dec. 1, 20151

President’s MessageKeith Lutz - CAP President

What Does This ShiftMean for Your Business?

When, or if, a fraudulent transactionoccurs, the liability for any resultingcounterfeit losses will fall on whicheverpart of the chain is responsible for notemploying an EMV transaction. TheCard Issuing Banks are responsible forensuring cardholders possess an EMVenabled credit cards. Failure to do so willresult in the card issuer being heldresponsible. Processors are required toupdate their networks and specificationsto be able to accept and transmittransaction information. Merchants areresponsible for having an EMV-compliantterminals; which means they must workwith their processor to ensure theirterminals are capable of accepting EMVtransactions.

Carwash Operators, as merchants,should contact their processors ASAP toensure their equipment is EMV compliant,if that hasn’t already be done. Is yourequipment capable to receiving EMVtransactions? Don’t get caught off guard.If you are still confused contact the CAPoffice and we can help point you in theright direction.

CHIP CARD NUMBERS575 million: Number of EMV cards to be issuedby the end of 2015

59%: Percentage of retail locations that will beEMV-compliant by the end of 2015.

78,800: Current number of EMV chip-activatedmerchant locations

40%: Percentage of US. debit cards that will beissued as EMV cards by the end of 2015

70%: Percentage of U.S. credit cards that will beissued as EMV cards by the end of 2015

86%: Percentage of financial institutions that planon issuing EMV debit cards in the next two years

$3.50: Average cost for issuing a new EMV card

$500: Average cost of an EMV-compliant point-of-sale terminal

Sources: Javelin Research & Strategy, AiteGroup, 2014 PULSE Debit Issuer Survey

EMV MigrationAre you Ready ForOctober’s Deadline?

Legislative UpdateCAP Staff

Continued From Page 1

2

Pennsylvania remains without a state budget. Disagreements between the Administration,the House and the Senate over taxation proposals, funding gaps and program expansionsleaves the Commonwealth in a state of limbo. The governor vetoed a Senate Bill thatwould have made comprehensive and structural reforms to the state's currently broken pen-sion system. Without real pension reform the PA State Employee Retirment System,SERS, and the Public School Employee Retirement System, PSERS, remain at risk andwill will most likely result in state and local tax increases to satisfy growing pension obli-gations.

There are several pieces of legislation currently on the table that could help small business-es in Pennsylvania. Rep. Seth Grove sponsored a net operating loss bill that would allowsmall businesses to take a net loss from other sources of income. Rep. Steve Bloom intro-duce HB 700, that would allow for tax-deferral when property is exchanged for similarproperty. This is currently permitted under Federal tax law and in all 49 other states. AndRep. George Dunbar introduced a bill that will increase the limit of expense deductionsunder the PIT to $100,000 per taxable year and increase the phase-out of this deductionfrom the current $200,000 to the federal amount of $2,000,000. PA law currently allowsC-corporations to use federal limits of $500,000, but limits those filing under the PIT to$25,000.

A special election to fill the 87th House Seat vacated by Republican Glen Grell and the161st House Seat vacated by Republican Joe Hackett took place on August 4th. GreggRothman, R - Camp Hill was victorious in the 87th district and Leanne Krueger-Braneky,D-Swarthmore won a three-way race for the 161st.

Legislative updates should remain interesting from this point forward given the unsettledappropriations and upcoming elections in 2016, so stay tuned.

Utilizing Social Media Platforms Effectively - Is yourbusiness using social media to drive traffic to your web-site? There are so many social media platforms that adedicated article is warranted on the subject. Facebookmerely scratches the surface. If you want to use yourwebsite as an effective marketing tool you can't affordto not school yourself on social media platforms. Do alittle research to get a better understanding of your cus-tomer base and learn which social media platforms willenable direct communication with this targeted audi-ence. The learning curve can seem daunting, but thetime investment can yield significant returns.

Know What your Customers are Saying - Consum-ers have a wealth of buying options and business infor-mation at their figures tips when making purchases.They’re also able to submit business reviews with aclick of a button. You want consumers to search localoptions, but there can be a negative side to this. Sitessuch as Angie's List, Yelp, Yahoo Local and othersgenerate searches requests that include customer re-views. Businesses can’t afford to ignore this informa-tion as it has a direct impact sales. It is important toconsistently monitor your company's reputation andperformance by reviewing the customer reviews atthese type of sites.

Make Paying as Easy as Possible - We know there isa growing trend of mobile payments like Google Pay,Apple Pay and, Paypal. The reality is that these meth-ods will likely grow into standard payment options.Traditional cards are being traded for a digital wallet,allowing consumers more flexibility and choices. Busi-nesses must take this into consideration and makepayment as simple as possible. Many washes aremaking adjustments for EMV migration already, so nowis the time to explore all of your available options.

New Options to Work Efficiently - Taking advantageof business tools available in today's market is key. It'samazing what can be accomplish without the amenitiesof an office.

The car washing business can become a mundaneoperation, especially for owners running washes on"autopilot". Simply maintaining equipment, filling sup-plies and collecting cash will not grow your business,and it certainly will not expand profits. To the otherextreme, it’s next to impossible to stay on top of ever-changing technology, evolving equipment options andthe myriad of possible upgrades offered weekly. Thereality is that there is middle ground and small busi-ness owners need to take a practical and smart ap-proach to their business strategy to net true growthand significant profits. Here are some areas to con-sider as you refine your business strategy.

Incorporating New Technology Wisely - There area plethora of new technologies available to improveyour bottom line, the key is to be judicious with yourselections and applications. Before you invest tomerely "keep up with the latest technology", exploreyour options and assess your return on investment.Do you need to focus on internet security, marketingvia social media, utilization of business apps or newpayment software? This may require some long-termthinking, but the idea is to incorporate technologiesappropriate for your business and that can save bothtime and money.

Optimize your Website for Mobile - Mobile digitalmedia time in the US is now significantly higher at51% compared to desktop (42%), according to acomScore study. What does this mean to you? Ifyour business website isn't optimized for mobile youare losing sales. Research from Mobify's mobile-commerce-stats shows that 57% of mobile users willabandon your website if it takes more than 3 secondsto load and 30% will abandon a purchase transactionif the shopping cart isn't optimized for mobile devices.It’s a "no-brainer", make sure your website isoptimized for mobile!

A tablet or smart phone allows businesses to re-main productive regardless of location. There’san app to scan and send documents, another appto download, sign and send contracta, and anoth-er app to make a financial transactions. Are youfamiliar with and utilizing communication toolsthat allow you to conduct conference calls fromyour car and share documents, on the spot, fromcloud storage? It would be a disservice to yourbusiness to not take the time to explore tools of-fering increased productively and efficiently.

Having a Cybersecurity Plan in Place -Morethan half of cybercrime is targeted at small busi-nesses. A McAfee report found about 90% ofsmall- and medium-sized US businesses do notuse data protection for company and customerinformation, and less than half secured companyemail to prevent phishing scams. Businessesmust establish internal protections to prohibit ac-cess to compromising websites, employ externalprotection provisions to ensure vendors complywith company privacy and security policy andthey must seriously consider the benefits of cy-bersecuity insurance. Neglecting cybersecuritycan be an expensive and foolish mistake.

There are always improvements and changes forbusinesses to initiate. The object isn't toperpetually spin your wheels in search of thelatest trends, but rather to remain engaged soyou are aware of your options. Too manybusinesses get caught up in day-to-day tasks andfail to "look up" to see what's going on aroundthem. Staying engaged with your industry andbusiness community allows you to network andshare best practices to better understand theapplication of popular business trends. Don'tallow your business to operate on autopilot, stayengaged, educate yourself and take advantage ofavailable technology appropriate for yourbusiness model.

Operating on Autopilot?

3

August September October

As a business dependent on water, it is imparitivethat we stay on top of trending water issues toensure our livelihood. We may believe that inPennsylvania we don’t face water challenges likedrought-ridden states in the west, however ever-changing water policy and regulation significantlyimpacts car wash businesses throughout the state.The northeastern states have some of the oldestwater infrastructure in the country and proposedEPA regulations on states regarding upgrades anddischarge levels, with little regard to cost orpracticality, will surely impact the cost of water andyour bottom line.

Additionally the EPA was proposing a rule toexpand the federal Clean Water Act to includepractically all waterways in the United States -including ditches - to fall under their control - yetanother power grab by the federal government.The rule has been temporarily withdrawn, thanks toa few dedicated legislators, but federal regulatorscontinue to advocate for its’ adoption.

We implore members to discuss this over-reach ofthe federal government with your federallegislators. We can’t afford to “sit this one out.”Contact CAP for assistance with contactinformation and talking points.

EPA’s Power Grabby: CAP Staff

PRSRT STDU.S. POSTAGEPAIDCARLISLE, PA

ADDRESS

430 Franklin Church Rd. ●Dillsburg, PA 17019

www.pacarwash.org

Classy III, Inc. for all your Belanger needs.Many options at great pricesGive us a call today!For more information:www.classy3.com or888.339.6818