Business Concerns

What do we need to know about fraud migration? We have our own card. Should we be concerned?

The significance and extent of fraud migration from chip & PIN credit cards, which is perceived to be a more secure technology, to magnetic stripe credit cards, which is perceived to be a less secure technology, is uncertain. Only time will tell. But, our view is that the “perception” of magnetic stripe technology as a less secure alternative will attract fraudsters. In other words, we expect fraudsters engaged in organized crime to prioritize their efforts and vandalize magnetic stripe credit cards. As more companies adopt chip & PIN there is also the possibility that this vandalism will accentuate among the ever fewer magnetic stripe users that remain. Therefore, the perceived differences is security and the adverse selection resulting from the adoption of a more secure technology are concerns that magnetic stripe credit card users should have.

It has been shown that fraud is migrating to the cards / technology that does not utilize the chip solution.

My terminal uses my telephone line to process transactions. Does anything change with the introduction of chip cards?

To the best of our knowledge, telephone lines should still be able to process chip cards. Source: Deloitte No. If a transaction is to be online, it will interact with your bank acquiring host as in the past. You may however, have a small reduction in online transactions if chip cards are presented that allow for offline authorization of the transaction at the terminal level. This will be more likely with international scheme credit card transactions.

We take cash payment across the counter but would like to accept credit and debit cards, but we’re not sure how to handle the need for PINs.

PIN is required on debit today in many cases. The advent of chip will see all transactions move to PIN authorization as a more secure & faster card payment transaction

Your terminal provider & acquirer will provide the appropriate certified solutions that will ensure that as the card is used, automated prompts will guide you through the transaction steps

Can I use an EMV terminal for anything other than credit or debit payments? Can I use it for my loyalty scheme?

That will depend on your loyalty scheme and how it is administered. If the loyalty scheme is administered at a host within your company you are likely getting the information from the POS already and that should continue and be built into your EMV compliant terminal. If you are launching a loyalty program that leverages the Smartcard Chip then additional enhancements to the POS will be required.

Will merchants benefit from the move to chip cards?

By accepting Visa chip & PIN cards at a chip-reading terminal in your store or restaurant:

  • Merchants can expect reduced chargeback frequency for fraud
  • Retail staff will no longer be responsible for signature verification
  • Retailers should experience faster checkout speed.
We only take credit. If we have to invest in pinpads, should we also take debit?

You should talk with your acquirer and if you qualify for acceptance of debit then the new pinpads would enable acceptance of debit too.