Why Chip And PIN Is The Way To Go For Small Businesses

Those days are gone when your business could afford to say no to credit card payments. Now customers anticipate convenience both for online and offline payment. This implies that you would require chip and pin terminals.

Today credit card payment is no longer a way to stay ahead of business but a necessity to stay in competition. With the advancement of technology, the credit card payments have become much more viable. Even mobile chip and pin machines are available today to easily transmit payment information to your hired merchant services provider. Often the technology used here is GPS. This chip technology has made it possible for small business to make available to their customers a faster and secure way to pay. It also helps block payment card fraud and fraud-related chargebacks.

How does it work?

Chip and Pin cards are nothing but your debit or credit cards which have an embedded microcomputer chip holding a cardholder PIN data. At the time of making payment, the customers hand over their credit or debit card which is then swiped over the machine. To process the payment, the customer must now punch in his or her Personal Identification Number (PIN) instead of his signature. Once Ok is pressed, the payment gets processed for the goods.  Thus, even with his card, the vendor is actually not handling the card. This alone makes the customer feel secure about making the payment. Only possibility of a fraud arises here are those scenarios when someone identifies your PIN number while you are punching it into the debit card terminal. This is unlikely as even with it, they would require your card. This is the main reason for these devices considered as flawless when pertaining to fraud. The CHIP is worthless without the PIN and vice versa.

Benefits of Chip and Pin to your business

Small businesses reap plenty of benefits by employing this technology for accepting payments. Some of the major benefits are:-

·    Ensures cards are authentic

We already understand how impossible it is to copy the chip technology when combined with the use of a PIN. This almost eliminates fraud which may initiate due to lost, stolen or counterfeit cards.

·   Reduces chargeback risks

Utilizing the chip technology takes away your responsibility to verify the authenticity of a signature and reduce the frequency of chargebacks.

·   Supports faster authentication

The process of entering a PIN is hordes faster than requesting and verifying a cardholder’s signature. This makes the entire payment process much faster.