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EMV Chip Card Technology And Aspects Related To It
EMV chip card is one of the fruitful outcomes of technology. We are living in a technologically advanced world where everything is getting an advanced shape with the help of technology. Now, if we consider the present situation where everyone is maintaining a social distancing due to COVID-19, the number of contactless transactions as well as online transactions is remarkably increased. This is happening because people are purchasing things sitting at their home and they are giving more preference to contactless transactions when they are in the retail shop.
If you are into brick and mortar business, you have to make changes in your business strategies in order to accept credit card payment. Now, if we specifically talk about the types of transactions, it is mainly of two types- card present transaction and card not present transaction. Card not present transaction refers to online payment, NFC payment and in case of card present transaction, consumers generally use Magstripe standard card, EMV chip card to complete the transaction.
If you are into online business, you have to spend money on purchasing payment terminals that can accept online payment. Now, different kinds of payment terminals are used for accepting EMV enabled chip cards and Magstripe standard cards. So, what will be ideal for you?
We at International Payment Solutions understand this concern and therefore, we have made a brief breakdown of EMV enabled cards in order to give you a concrete idea.
Magstripe Standard Cards
Magstripe standard cards are the normal cards that we generally use to make online bill payments. People also call it ‘Swiping’ as they complete transactions by swiping the card over the card reader. The mobile card reader is also called ‘Swipers’. In the case of Magstripe card transaction, the card consisting of the necessary information delivers the data to the card readers and thus the transaction gets completed. However, Magstripe transaction is not well-secured and consumers, as well as merchants, experience many fraudulent activities.
In order to mitigate such fraudulent activity, EMV chip cards are introduced. The full name of EMV is “Europay MasterCard Visa”. It is completely a new technology where a microchip is embedded into the card. The chip has its own encrypted data that is difficult to copy. It has an extra layer of security that is not there in the Magstripe standard card.
The foremost objective is to mitigate the number of card-present debit and credit card fraud. It is Europe where the EMV chip card was first introduced. It was in 2006and after that people started using it in Canada in 2010.
EMV chip card transaction refers to “chip and dip” and “chip and pin” transactions. It is because the way people transact using this card is completely different from that of the Magstripe standard cards. In such a case, people have to insert the card into the payment terminal and enter the PIN in order to complete the transaction. In some cases, the cardholder has to sign instead of putting the PIN. This is why people call it “chip and signature”. People can also make contactless transactions with the help of this card. In such a case, card uses NFC technology. The consumer just needs to hover the card over the payment terminal and the transaction will get completed.
Is Swiping Stopped?
Well, the fact is that swiping transactions or we can say Magstripe standard card transaction is an advanced technology and therefore, merchants are upgrading their payment terminals so that they can accept EMV chip card transaction. Credit card networks are trying to prevent fraudulent credit card and debit card activities and therefore, they have already promoted EMV chip card transactions. If we consider the present situation, most EMV chip cards are still coming up with the magnetic stripe card. This is happening because merchants are upgrading their payment terminals. They are in the transition mode and it is easy to upgrade the entire payment terminal system. Therefore, you can still find the magnetic stripe in some credit and debit cards so that the cardholders do not face any sort of difficulties while making transactions.
What About The E-commerce Transactions
Well, EMV chip card is an inextricable part of card present transactions and therefore, there will be no change in the online or e-commerce transactions. There is no change in the policies and so, fraudsters might target the e-commerce transactions. We will suggest the cardholders to follow the best practices while making online transactions.
Not An IPS Merchant?
By now, you have probably understood the importance of EMV chip card transactions. It is the future of the card-present transaction. Now, if you want to accept card present transactions, you have to pair your business with any merchant processor solution. International Payment Solution is one of the most efficient payment processors. If you want to achieve the best outcome, you can get in touch with IPS.