EMV chip facts you need to know

Every business owner is rushing to purchase the necessary software and hardware so the EMV chip card can be read and consumers can be assisted with their purchase. Here are the specific chip facts consumers need to be aware of.

EMV chip cards are quite secure; more secure than the previous credit card. Why this type security has taken place is because of a computer chip. When you, the consumer, receive a new card from American Express (will use them as an example) you will see a metallic square on the front of your card. It’s small but quite visible enough to notice and that metallic square is reason one to what places the EMV chip card above in technology and in look from previous type. Reason two is the magnetic stripes as these work different when the EMV chip card is used. The EMV chip will give a unique transaction code that will never be used again. This type technology has higher chance at prevention of financial theft.

The card will work slightly different but they are just as easy. When using the magnetic stripe the process is done in two steps first the card is read then the transaction is verified. When the EMV card chip is used a process called card dipping takes place. When consumers do this process, the EMV chip card is entered into the EMV terminal slot and in this scenario American Express would be contacted for verification of the card. In doing the above, American Express would also create a unique transaction number. Transactions using the EMV card will involve use of patience.

Contactless card reading can also be done if card dipping is not the chosen choice of payment. What is contactless card reading; there are specific type cards that will allow this to happen with a terminal scanner as it can pick up the card data from the computer chip itself. Consumers do like this idea because this idea is quite easy to use when paying for items and it is a matter of just tapping to make this type of transaction. Business owners are experiencing the issue however as contactless card readers are expensive pieces to purchase still so there is a long way to go yet before this type option becomes more affordable.

Verification will still be required when using the EMV chip card in some form. Previous credit card holders used a PIN number instead of signature. There is an issue taking place now with equipment as many are not quite ready to handle the PIN numbers at this time. At this time, signatures are only being accepted but eventually PIN numbers will become available again with the newer technology as it falls into place.

 

If you can benefit from lower processing rates or need assistance with EMV upgrades contact us today.