Chip and pin credit cards are the new standard in technology-enabled credit cards. With the Oct. 1, 2015 EMV liability shift nearing, getting the technology to accept these cards is about more than keeping up-to-date with payment trends: it’s about avoiding the costs of fraud.
If your business still doesn’t have the technology necessary to accept chip and pin credit cards, here are a few things you need to know.
Chip And Pin Credit Cards Boost Fraud Prevention
Swipe-based, magnetic strip-enabled credit cards had a good run. Unfortunately, with data thieves more tech-savvy than ever, these cards no longer cut it. Criminals have found ways to steal credit card information as it’s transmitted from POS terminals to processing banks, clone credit cards and more.
EMV-compliant chip and pin credit cards have an embedded microprocessor chip that produces a unique, secret code with every transaction. This code helps to prevent hackers from stealing a customer’s payment information as it’s transmitted.
These chips also generate verification information at the point of sale. This information indicates to the cashier what kind of verification to require from the customer (such as the customer’s PIN or a signature) before authorizing the purchase. A PIN prevents thieves who have physically stolen the card from making unauthorized purchases.
Chip And Pin Cards Require Updated Technology
If you’ve been using the same POS terminal for a long time, you’ll likely need a new one to accept chip and pin credit cards. Fortunately, state-of-the-art machines like the Clover™ Station offer a wide range of benefits for merchants. Beyond accepting chip and pin credit cards, these machines are able to track inventory, manage employee schedules, get insights into your customers’ behavior and generate reports. With add-on apps, these machines even have the ability to accept mobile payment options such as Apple Pay™.
Chip And Pin Cards Protect Your Business From The EMV Liability Shift
The EMV liability shift happens on Oct. 1, 2015. Once this date arrives, credit card companies transfer the financial burden of fraudulent transactions to merchants and card-issuing banks. Merchants that haven’t upgraded their payment technology to accept chip and pin credit cards will shoulder the costs of any fraudulent transactions at their business. On the other hand, businesses that upgrade their technology to secure customers’ payment data are protected.
If your business still doesn’t accept chip and pin credit cards to meet EMV compliance standards, you need to take action now. Talk to your payment processing or merchant services provider about upgrading your technology and navigating this transition smoothly.