The Most Important Information to Know About Chip Card Terminals

Chip card terminals are slowly becoming the way of the future in payment processing. You’ve probably encountered one already whenever you go shopping for clothes or kitchen supplies. There are advantages to using these types of terminals for your business. Some merchant account services may offer this equipment for their clients. In case you haven’t set up a merchant account before, you can learn more about how to do it in this guide for getting a merchant account. If you have already, then here’s the most important information to know about chip card terminals.

What are chip card terminals?

You should first know that chip card terminals are sometimes referred to as EMV terminals. EMV stands for “Europay, Mastercard, and Visa." These were the companies that developed the chip technology. There are two ways this technology functions. Through the Chip-and-Signature function, the customer is required to put down their signature to validate the transaction. The Chip-and-Pin function requires a customer to enter their four-digit PIN to validate a transaction. Card-issuing banks decide on which function to use, but in general, United States-issued cards generally only use the Chip-and-Signature function.

Why do merchants choose chip card terminals?

Many merchants choose to use chip card terminals for security reasons. A chip card has a one-use-only encrypted code called a token or cryptogram. The one-time code is only used for the specific transaction a customer makes and can't be used multiple times if a scammer copies it. The security can't prevent all frauds, given some scammers can still successfully hack into a chip card terminal and obtain the information on a customer's card. Nonetheless, the one-time-use-only code reduces the chance of a customer becoming a victim of card-present credit card fraud.

How do you choose the best chip card terminal?

One of the most important factors you should consider when choosing a chip card terminal is finding one that fits with your business goals. If it's a goal to improve the customer experience and reduce paper receipts, a chip card terminal that has embedded signature capabilities might be worth considering. It eliminates paper receipts by storing them electronically, and the customer can have a faster checkout experience. If it's a business goal to reinforce your branding, you can perhaps consider a multimedia chip card reader. These readers allow you to feature your brand's logo, and also place targeted promotions on colorful touch displays. Once you determine what the business goals are with getting a chip card terminal, you can determine which ones have all the features you need and compare prices to find the best deal.

More businesses are beginning to use chip card terminals for a variety of reasons. Given the security advantages and other functions that can support business goals, it may be worth it for you to consider using it for your company. Be sure to spend as much time as you need to research chip card terminals, and decide if you think it can make your business operate better.