Chip Processing: What Retailers Need to Know
Credit card machines have evolved in a very real sense, and much of that evolution is related to consumer protection. It’s becoming more of a liability to store sensitive credit card information, even briefly while it’s being transmitted to complete a sale. As a result, new systems incorporate a security chip. Here’s what retailers need to know about this new advancement.
EMV stands for “Europay, Mastercard and Visa”, and it’s a global standard for payment processing. Customers have already begun receiving credit and debit cards with small chips embedded in them (you may even have one or two yourself). Essentially, they utilize a complicated algorithm and several layers of security to keep fraudsters from snatching either you or your customer’s bank information during a transaction.
Many retailers are slow to adopt this system, and it’s true there are faults. The credit card processor can work a bit slower than with the old stripe system, and customers aren’t quite used to inserting their card. As news gets out about the safety measures this new system allows for, more customers will change their tune. The system will also improve over time. This is, after all, new technology.
Previously, credit card terminals were a frequent source of hackings. Home Depot, Target and other major retailers all felt the sting. Smaller retailers are at an even greater threat, as they often can’t afford the kinds of in-house security measures major players pay for. As a result, services have sprung up to offer payment processing to smaller retailers. More affordable processing, and less liability, means the retailer has to worry about fewer problems and can focus on running the business.
At Charge.com Payment Solutions, Inc., customers pay no application fee and payment processing software is free.