19 Jun
As newer payment technologies become increasingly popular with consumers, many small businesses may be left wondering what changes they need to make on their end. EMV chip card readers are one important upgrade worth considering, as these allow merchants to accept a broader range of payment types in a more protected manner.
While transitioning payment systems requires investment, utilizing EMV readers provides multiple long-term advantages both from a security and customer experience perspective.
First, let us give a quick explanation of what EMV chip readers are. EMV stands for Europay, Mastercard, and Visa. It is the global standard for credit card payments. Most credit cards nowadays have an embedded computer chip in them, in addition to the magnetic stripe on the back. EMV chip readers are devices that can read the information on the computer chip in an EMV credit card. When a customer inserts or taps their EMV credit card into the chip reader, it encrypts the card details to help prevent fraud.
Here are some compelling reasons for any shop or store owner to invest in EMV chip card acceptance capabilities.
1. They Are More Secure
EMV chip cards are much harder for criminals to copy or steal information from compared to magnetic stripe cards. The chip in the card dynamically generates a unique one-time code for each transaction. This makes it way tougher for thieves to hack or replicate a card number. EMV chip readers help protect your business from fraudulent card-not-present transactions over the phone or internet too.
2. You Will Avoid Liability Shift
A major liability shift happened on October 1, 2015, where the liability for fraudulent card transactions shifted from the card issuer to the business that does not have an EMV chip reader. So if your reader is not EMV compliant and a fraudulent transaction occurs, your store could be held responsible instead of the bank. Getting an EMV chip reader protects your bottom line from eating these fraud costs.
3. Customers Expect Chip Technology
Most major credit and debit card brands in America have started issuing EMV chip cards to all their customers. People who have these new chip cards expect to be able to use the chip when they shop. If your checkout registers still only have magnetic stripe readers, it can lead to customer frustration and dissatisfaction. Adopting EMV readers means you can provide the payment experience customers are requesting.
4. Reduce Chargebacks
Fraudulent transactions will likely decrease when your business uses EMV chip readers. Fewer fraudulent orders imply fewer chargebacks from card networks and issuers. This saves your company money and extra work dealing with processing chargeback disputes. The payments industry reports as much as a 74 percent drop in counterfeit fraud losses after implementing EMV technology.
5. No Need To Manually Key In Card Details
With EMV chip cards, the payment details are securely read from the chip during the transaction instead of having to manually key in the 16-digit card number, expiration date, and other fields. This reduces errors in transcription and increases the speed of checkout lines. Employees will spend less time processing each EMV payment and have more time to help other shoppers.
6. Boost Perceived Security And Trust
Consumers trust that EMV chip cards and readers provide advanced security compared to magnetic stripe-only transactions. Displaying signage explaining your business uses chip technology helps instill confidence in shoppers that their payment information is properly protected when shopping at your store. This heightened perception of security and trust could attract customers who need reassurance their purchase is safe.
7. Tap Payments Are Supported
Many EMV chip card readers additionally have contactless “tap to pay” functionality. This allows payments to be accepted via Near Field Communication (NFC) methods like Apple Pay, Google Pay, or tap-enabled credit cards without dipping or swiping the physical card. Tap payments provide another fast and convenient way for customers to complete transactions, especially for lower ticket items.
8. Accept Chip Cards Faster
Swiping a magnetic stripe card requires only a few seconds whereas EMV chip card transactions involve securely reading encrypted data stored on the chip. This typically adds only 3-5 extra seconds to a transaction versus swiping. While this slightly increases transaction times versus swiping alone, the added security benefits and reduced fraud risk are worthwhile considering it’s a very minor difference for customers.
9. Future-Proof Your Business
As more cards come with chips and less with magnetic stripes over the coming years, it’s expected swiping will eventually be phased out completely in favor of EMV chip technology. By adopting chip card readers now, your business ensures it can accept all payment forms. This future-proofs your payment acceptance and avoids needing an expensive replacement upgrade down the road once swiping is eliminated. Taking the step now protects ongoing operations for years ahead.
To remain secure, compliant, and meet customer expectations, consider upgrading your payment systems to include EMV chip card readers. As the global standard for credit card payments continues to evolve, equipping yourself with chip reader capabilities like those from Hana Retail will keep your business securely positioned for the future of commerce. Contact us today to upgrade and start accepting all major payment types with our reliable and easy-to-use POS system.
