Because of the increase over the past ten years in criminal activity such as credit card fraud, a system has been designed to assist merchants to eliminate and counteract episodes of fraudulent activity. These technological advancements include the embedding of microchips into credit cards. This procedure results in the elimination of card swiping and subsequently, can offer a higher level of credit card security. Merchant services can now be revolutionized through the use of such products as payment processing can be made through the scanning of the chip rather than the magnetic strip featured by most modern credit cards. A card that features chip technology can be inserted into credit card terminals while the cardholder enters his or her pin number.
Understanding Chip Compliance
Embedded security microchip technology for credit cards was first introduced by Visa and MasterCard in Europe and is currently used in Canada as well. Experts state that by the year 2015 magnetic strip credit cards will be obsolete. When this transition is made, merchants will be required to upgrade their terminals or merchant transactions for goods or services will not be possible. Merchants will be forewarned that non-compliance will result in the disconnection of their terminals.
Chip Card Pros and Cons
Each agency or merchant that accepts credit cards as a method of payment for goods or services must eventually have chip compliant terminals. This is true regardless of the size of the business or service. Many benefits are associated with this technology such as the following:
▪ It will no longer be possible to forge someone else's signature and chip information cannot be duplicated.
▪ More programs and information can be stored on a chip than a traditional magnetic strip
▪ The chip offers additional protection against authorized usage
▪ Merchants will experience less fraud
▪ The processing of purchases can be completed in a more timely manner.
As with any new product, some negative aspects are associated with chip technology including the following:
▪ New terminals for credit card use must be purchased by the merchant or or disconnection occurs.
▪ Fraudulent transactions could occur if one's pin number becomes known.
▪ It becomes more difficult to prove fraudulent transactions, especially in foreign countries
Canada certain merchant services that can offer assistance to small companies with regard to becoming chip compliant. Once a merchant sets up an account with such a service provider, they can offer cost effective advice to the business as well as help the merchant set up guidelines and avoid needless delays.
In addition, many merchant services also provide credit card terminals that are chip ready and can be leased or purchased, which is a favorable option. They are there to provide credit card processing systems for every lifestyle and budget. If you want to see the options that you could have then just visit this website.
