Chip and Pin Cards: Why Your Business Should Embrace Them
108 Greenwich St., 5th Fl New York, NY 10006
For personal assistance, call
877-880-8086
Get Started

FINANCIAL NEWS

Chip and Pin Cards: Why Your Business Should Embrace Them

For decades, the way businesses process credit cards stayed the same. Customers swiped the magnetic stripe of their card and verification depend on their signatures or pin being a match. Since the advent of the credit and debit card, there have always been people trying and successfully finding ways to exploit weaknesses in the system. For the past couple of years, the United States has been trying to push the change to EMV cards which stands for Europay, Mastercard, Visa. Commonly referred to as “chip & pin,” these cards contain a smart chip that serves as data storage and generates a unique code for each transaction and makes physical cards hard to counterfeit.

Credit card fraud has declined since the UK introduced EMV cards. Despite the fact that EMV has been a standard in most of the world and the evidence that it is a more effective system, the United States has been reluctant to embrace this change. Customers complain that it takes longer for transactions to be processed and businesses have been slow to update their point-of-sale terminals due to the cost of the upgrade. Regardless of the reasons you may have for not making the change, small business owners should switch to EMV ASAP. Not only does it help protect your customers, it can help your business as well.

By now every business should have received a letter from their merchant services provider about the fraud policy change effective as of October 2015. If fraud occurs, whichever party (card-holding customer or business owner) is least secure becomes liable for the cost of fraudulent purchases. If your business is found at fault, this can mean hefty fees that will come out of your pocket. Another important thing to keep in mind is that the trust and confidence of your customers are essential to staying in business. One of the worst things is to have customers who are afraid to use their credit card at your store. Once people get use to waiting the couple extra seconds it takes to process, they will look for the security that chip & pin cards provide.

Back to the list

See what your business qualifies for

Some required fields are empty

Latest blog posts

Most Read Posts

Categories


See what your business qualifies for

Some required fields are empty

Your Trusted Business Funding Provider 

Over $50 Million Delivered Nationwide 

x