16 Apr
The last decade witnessed a credit card evolution. Credit card issuers transitioned from regular credit cards to chip credit cards. One top reason for this transition is security. Using a chip credit card reduces the risk of in-person fraud. Here’s what you need to know about EMV chip credit cards to ensure safer POS transactions. It ensures the safeguarding of your customer’s personal information.
What is EMV?
The initials EMV stand for Europay, Mastercard, and Visa, which are the companies that originally developed the technology behind EMV, or chip-enabled, credit and debit cards. EMV is a global standard for credit, debit, and prepaid payment cards based on chip card technology. The chip that is embedded in EMV cards contains a microprocessor that stores and protects cardholder data. There are two primary kinds of EMV credit cards that are commonly used:
- Chip-and-PIN
The first type is known as a chip-and-PIN card. With this card, you will insert the card into the payment terminal and then you will be asked to enter a secret code number that only you know. This code number is also called a personal identification number or a PIN for short.
- Chip-and-signature
The second main type is called a chip-and-signature card. When using this EMV payment method, you will still insert the card into the payment machine, but then instead of entering a private code, you will be required to provide your autograph on the terminal’s screen as your type of verification confirmation.
Also Read: Reasons to use EMV Chip Readers
Benefits Of Using EMV Credit Cards
There are quite a few perks to using credit cards with EMV chips compared to the regular magnetic strip kind.
Lower Risk of Credit Card Fraud
EMV credit cards are much harder for thieves to copy or clone compared to traditional magnetic stripe credit cards. The embedded computer chip in EMV cards along with the security code that changes with every transaction makes it very difficult for criminals to steal your card information during a purchase. This means you will be at a much lower risk of becoming a victim of credit card fraud if you use a chip-enabled EMV card instead of just a regular magnetic stripe card.
More Security at Payment Terminals
EMV chip cards are also safer to use when making purchases in person. That is because the chip can communicate securely with payment terminals to verify the transaction instead of swiping the magnetic stripe. Criminals will find it a lot tougher to steal your data from the card reader if you insert an EMV card compared to swiping a traditional card. Your personal financial details are better guarded during each transaction.
Wider Acceptance by Merchants
More and more stores, shops, and other businesses in the USA are upgrading their payment terminals to support EMV chip cards. The liability shift that happened a few years back motivates merchants to accept chip cards, otherwise they may have to foot the bill for fraudulent charges if customers pay with regular magnetic stripe cards. So you will find EMV cards are accepted at an increasing number of locations nationwide over the coming years.
How does EMV technology work?
EMV technology works by using small microchips embedded in credit and debit cards. These microchips are capable of storing and processing information just like the chips in computers. When the card is inserted into the chip reader slot on the payment terminal, the embedded chip and the payment terminal conduct transactions together using encryption methods. They authenticate each other and confirm the card number is valid. The chip also helps verify the transaction is genuine because dynamic codes are generated each time instead of static magstripe codes being used over and over. This dynamic one-time code method provides better protection against fraud compared to magnetic stripe cards which can be easily cloned.
Transactions have become super easy and secure with EMV cards. So, customers use them a lot, and hence, retailers must have an EMV-compatible terminal for payments.
EMV chip credit cards are a must nowadays with the increasing number of fraudulent activities. These cards are much more secure and difficult to get through because of their advanced security features. So, to make payments safer, retailers must install a POS system that accepts EMV card payments. Using Hana retail means your business will be able to accept all types of payments whether the card has a magnetic strip or an EMV chip. Making sure customers can pay easily is important for sales and keeping them happy- sign up FREE today!
