With many businesses going cashless, it is vital to understand the payment methods available to you. When paying at your local store or restaurant, you can use your debit card chip or a credit card. These ensure that you do not have to carry a large amount of money even when making large purchases. There are two types of EMV (Europay, Mastercard, and Visa) chip cards in use today; The chip and PIN and the Chip and signature. When you use the chip and PIN card, you will need a PIN code to authorize the transaction, while with a Chip and Signature card, you sign for the transaction.
1. What Are The Advantages Of Using Debit Chip (EMV) Cards?
They Offer Protection Against Fraud
EMV chip cards require users to provide a PIN to authorize transactions. That ensures that people cannot use lost or stolen cards to pay for items in shops or restaurants. Bear in mind that if you lose your card, the person who finds it cannot use it because they do not know the PIN. On the other hand, they may be able to provide a believable signature if you are using a chip and signature card.
Guaranteed Authenticity
Businesses can be sure that the cards customers give are authentic and belong to them. In case a dishonest person is using a stolen card, they will be able to tell and prevent fraud.
Better Information Storage
Chip cards store a lot more information than magnetic strip cards. They, therefore, have more representation of the owner’s identity. Merchants in stores can verify your identity and ensure that dishonest individuals do not use it for their transactions. You can use your chip card for a long time too.
Easy Acceptance
You can quickly get a POS system installed in your place of business. It is also important to note that chip cards allow you to secure your customers and your business against fraud.
2. What Is The Cost Of EMV Card Acceptance?
There is no difference in cost for accepting EMV cards versus magnetic strip cards for your business. It is important to note that debit cards generally use a chip now, while a lot of credit cards have a magnetic strip. You can talk to a POS machine supplier to get one that accepts chip and PIN cards at a reasonable cost.
For your customers, chip and PIN transactions are cheaper on their debit card chips than on magnetic strip credit cards. That is because the processing cost for chip and PIN cards are lower. They are, therefore, cheaper for your customers.
3. How To Use Your Debit Chip Card At The Store?
After you finish picking your purchases, inform the cashier that you will use your debit card to pay for the items. They will tell you whether they have a terminal for chip cards. Give the cashier your card to run; they will require you to input your PIN to complete the transaction. It is not advisable to give your PIN to the cashier, whether in writing or by saying it aloud. The cashier will show you where to input your PIN and give you a receipt for the transaction.
4. What Are The Drawbacks Of Adopting EMV Chip Cards?
Although there are many advantages of using EMV cards, there are also some drawbacks.
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Employee Education
When you adopt EMV terminals for your business, you will need to train your employees to use them. You may need to pay the POS company extra to train your staff to use the system, which is not ideal. You will spend a lot of time ensuring that your team can use the new system. That noted after they learn how to use the system, your business, and your customers will be safe from fraudulent individuals.
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Transaction Speed
The EMV chip card transaction process takes longer compared to magnetic strip cards. If you have a large number of customers, they may grow impatient. It is also important to remember that EMV systems require that customers enter their PIN to complete the transaction, which takes even more time.
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Costs
EMV terminals cost nearly the same as other POS systems. However, they are expensive to update, although the updates are crucial for the system to work correctly. If you run a small business, this may be challenging for you.
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Terminal Issues
Users have had some problems with the EMV chip card terminals. Most terminals do not allow customers to skip the PIN entry. Although that ensures their protection, customers may find it annoying. Sometimes a system may not require a PIN to complete a transaction. That means another person can use your card and spend your money without telling you. Apart from that, terminals may not offer cashback options to customers. Unlike cash transactions where you can get your money back if you overpay, these systems do not allow that.
5. Should You Have An EMV Terminal In Your Business to accept Debit Chip Cards?
The EMV chip card is here to stay and is a great way to protect your business. They ensure that only legitimate card owners can use them to make purchases. If you run alow volume business, there is a lower risk of fraud. But the truth is, there is still some risk, so getting the machine would be a good idea. In case you handle high volume sales each day, an EMV chip card terminal will protect you from significant losses.
Although updating your system may be costly, remember one instance of fraud could cost you more than the terminal. If you are considering switching to an EMV system, you can talk to your payment processor about getting a deal on the hardware and the transaction cost. That way, you will not use a lot of money on the project. Remember, an EMV terminal also informs your customers that you keep up with the latest hardware and security measures. They also tell your customers that you are knowledgeable and your business is dynamic.
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