Cash transactions are becoming rarer every day as consumers make the switch to credit and debit cards. Businesses must offer these payment options to stay competitive. Fortunately, today’s credit card systems for small business are more secure than ever, thanks to EMV technology.
EMV stands for Europay, MasterCard and Visa. EMV refers to cards with smart chips as well as the terminals and ATMs that are equipped to perform smart chip transactions. This security measure has been standard in other countries for many years, and the United States started the transition in 2015. Most financial institutions and banks are incorporating smart chips into all of the new credit cards and replacement credit cards they issue. It won’t be long before every card you see has a payment security chip installed.
How Does EMV Work?
Traditional credit and debit cards supply merchant terminals with payment information that is encoded in the magnetic strip on the back. The stored data never changes, so thieves only have to get access to the data once. After that, they can access your accounts, making purchases and withdrawing cash. EMV smart chips create a unique transaction code for every use, so stealing the smart chip data off of one wouldn’t be useful at all, making them safer to use. The current transaction code won’t work the next time the card is used.
How Do Consumers Use EMV Cards?
Unlike traditional cards, smart chip cards or EMV cards, are not swiped through your credit card system. Instead, customers insert the card into a slot that reads the information on the magnetic strip and confirms the approval of the smart chip transaction code. Terminals are set up to request customers’ personal identification numbers (PIN) for debit cards, and they can collect required signatures for credit cards.
How Can EMV Benefit Merchants?
Though some business owners have noticed that EMV transactions are slightly longer than credit card purchases, most find the delay worthwhile. Because chip technology is so effective at fraud prevention, regulations have been put in place to maximize use. You can look forward to increased security, and by accepting chip cards, you can ensure that you are not held legally and financially responsible for any fraudulent transactions that do slip by.
Authorized Credit Card Systems Can Help Your Business
We have a diverse set of services and products, and can help you find the best payment processing solution for your business. If you need help trying to run a modern and more profitable business, contact us today!