May 14th, 2015 by Elma Jane
The way customers Pay In Stores Is Changing.
Chip cards are here to provide advanced security with every transaction. Accepting chip cards could be as simple as changing your payment terminal.
What do you need to know about Chip Card and EMV? Chip cards are payment cards that have an embedded chip, which offers advanced security when you use the card to pay in store. Chip cards are based on a global card payment standard called EMV (Europay, MasterCard and VISA) currently used in more than 80 countries.
Why Is it More Secured? Chip card transactions offer you advanced security for in store payments by making every transaction unique, and, more difficult to counterfeit or copy. If the card data and the one-time code are stolen, the information cannot be used to create counterfeit cards and commit fraud.
How do you know if a customer has a Chip Card? The customer’s card will have chip on the front of it, magnetic stripe remains on the back.
How to use Chip Card at the POS? Swipe the card as they normally would and follow the prompts. If the terminal is chip-enabled, it will prompt them to insert it instead. The customer should insert their card with chip toward terminal, facing up. The chip card should not be removed until the customer is prompted.
Customer will provide their signature or PIN as prompted by the terminal.
Some transactions may not require either.
When the terminal says the transaction is complete, the customer can remove their card.
Chip-enabled terminals will still accept magnetic stripe card payments for customers who do not have a chip card.
What does a chip-enabled terminal look like? They have all of the features you are used to with a payment terminal, with the addition of a slot for the customer to insert their card. The slot is typically located at the bottom or the top of the payment terminal.
How will you know if a terminal accepts chip card? During the transition to chip, customers are being told to swipe their card as they normally would and follow the prompts. If the terminal is chip-enabled, it will prompt them to insert it instead. If you have chip-enabled terminals, you can tell your customer to insert their card for a chip transaction, if a customer has a chip card.
How can you get a chip-enabled terminal? Contact your acquirer or merchant service provider.
Show your customers that you care about their information security by making the move to chip. This will ensure that your business and your customers are protected from fraud. Start accepting chip cards!
You may be liable for fraud if you don’t make the change from chip terminal. Starting October 2015, rules are changing. Merchants that accept chip will be protected from fraud losses resulting from in store counterfeit magnetic stripe card transactions just as you are today. However, liability will shift from issuers to merchants if their payment terminals are not chip-enabled for in store transactions. Fraud liability for lost or stolen cards varies by payment network. Contact your acquirer or payment services providers for more information.
Posted in Best Practices for Merchants, Credit Card Reader Terminal, Credit Card Security, EMV EuroPay MasterCard Visa, Payment Card Industry PCI Security, Point of Sale Tagged with: card data, cards, chip cards, Chip-enabled terminals, data, EMV, EuroPay, magnetic stripe, MasterCard and VISA, merchant service provider, Merchant's, payment, payment cards, payment network, payment terminal, POS, Security, terminal, transaction
