Why the chip and pin machine is the real deal
Why the chip and pin machine is the real deal
Since its introduction in the UK more than 10 years ago, the chip and pin machine is used by virtually every business that accepts card payments. The biggest advantage of the chip and pin machine is that it process payments in a fast and secure manner. In fact, the reason for the creation of this technology was to enhance the security of card payments and offer protection to both card providers and consumers from the increasing risk of card fraud.
Before the chip and pin machine was introduced, cards had a black magnetic strip on the back that was used by consumers to swipe and sign for goods. This technology had its limitations. It made it very easy for cardholders’ information to be accessed by fraudsters. Chip and pin was created ostensibly to solve this problem and was a hit with the big banks which had been affected by the wave of card fraud.
What is the purpose of the “chip”?
The “chip” is embedded on the card. It is where the cardholder’s 4-digit pin is stored. When the card is inserted, the chip is read by the machine and once the matching pin is entered by the customer, the transaction can then proceed.
With the chip and pin machine, in order to complete any transaction, the customer has to enter the PIN number. This is different to how it used to be when all that was needed was the customer’s signature.
Here are some of the benefits of having a chip and pin machine:
1)Quicker authentication
Before the chip and pin machine was introduced, cardholders had to append their signatures which would then be taken through a process of verification. With the chip and pin machine, the process is as easy as entering a pin number as the authentication is automated. This is definitely faster than requesting and then verifying the signature of a cardholder.
2)Fool-proof
Chip technology is almost impossible to copy. When you add the PIN component to the equation, it makes it harder for fraudsters to access your account when they gain access to your card. Since the introduction of the chip and pin machine, card fraud has reduced significantly.
3)No more chargebacks
With the chip and pin machine you enter your pin and not your signature like it used to be before. The chances of reversals of transactions are reduced significantly. As a result, you are protected from suffering chargebacks caused by transaction reversals.
4)Widespread acceptance
With the widespread adoption of this technology, if you have a chip and pin machine, you will be able to accept card payments from virtually any card provider in the market. It means that you will be able to serve more customers who don’t carry cash around. And the transactions will be secure, which means you will have peace of mind.
A chip and pin machine can still read the magnetic strip card. It is not limited to cards that have the chip and pin component. This is a great incentive as you don’t have to turn away customers who have not upgraded to the new technology. So if your biggest concern was card fraud, the chip and pin machine definitely takes care of you in a major way.
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