EMV Card Processing – The Prominence For The Business
After the introduction of EMV technology in Europe around the 1990s, it now becomes a global standard for credit and debit transactions. It was introduced by European because card authorization was intensely expensive for European card issuers. But with the introduction of EMV technology, not all the countries immediately adopt it as the USA and as a result, the USA becomes the target of the fraudsters. The USA shifted to EMV in 2014-2015 to rescue itself from fraudsters. When the USA migrated to EMV technology, an impressive result was seen. The fraud losses decreased by 76% in Dec 2018. In a report Visa, as of March 2019, 3.5M of the U.S. merchants already began accepting EMV cards. More than 75% of U.S. stores are now accepting EMV cards. So it’s vital for a merchant to have an EMV Card Processing to be able to serve their customer better. In today’s time, if a merchant no matter from the USA, Europe or Canada, if not using EMV Card Processing, then he lags behind in business.
Are you also a merchant looking for an EMV credit card Processing Solution for your business? Fantastic! It’s a good step towards your business to serve your customer better as well as have better accountability for all the transactions done via EMV terminal. We have global partners all across the world to help you with an EMV terminal for card processing. But before starting, first, understand the EMV technology and how it could benefit your business. Stay Tuned!
What Is A Chip Card Or EMV Card And How It Is Different From A Magnetic Stripe Card?
Let’s start with magnetic stripe as it is an older technology compared with the chip or EMV technology which was introduced in the 1990s. The Magnetic Stripe card was invented by IBM in the 1960s, and it is the oldest technology used in credit or debit cards. The cards are still in use, and the stripe can be seen at the backside of the credit or debit card. It is also known as a swipe card because the transaction takes place by swapping the card into the terminal.
As technology evolves, there are many efforts made so as to make the card transaction more secure and safe. The result of such effort is what comes out a newer technology of cards known as Chip Cards. A chip-card somewhere looks the same as a magnetic Stripe card but contains an embedded microchip in it which makes it more intricate and protective as compared to that of magnetic stripe card. The chip embedded in it stores the card information in encrypted form, which increases the data security, and one can pay at any stores, malls, restaurants, or resorts securely. A chip card is sometimes also referred to as an EMV card which stores the information more securely onto the chip. More specifically, EMV is a security standard for payment cards and mobile cards. To make a transaction using EMV cards, the customers do not need to swipe the card but insert the card into the terminal until the transaction takes place.
Types Of Chip Card Or How EMV Card Processing Take Place?
In most cases, the EMV chips transaction takes place by just inserting the card into the terminal, and then the terminal makes contact with the chip and verifies it, and the transaction takes place. But in some cases, the transaction takes place differently, and so the additional steps required to proceed the transaction. Based on the additional step required to authorize the transaction, EMV chip cards can be classified as:
- Chip-and-Signature Card: In chip and signature-based cards, the transaction takes place after the customer provides the valid signature and authorizes the transaction. Chip-and-signature cards use EMV technology, and hence it is a step up in terms of security as compared to traditionally used magnetic stripe cards which embedded the static data in the magnetic stripe.
- Chip-and-PIN Card: The chip-and-pin card is somewhat similar to the chip-and-signature card, but instead of providing a valid signature to proceed the transaction, the customer or cardholder has to provide a valid personal identification number.
What Is EMV Technology?
EMV is nothing but a technology or security standard for credit or debit cards. It comes into the role when there is a need for an alternative to the traditionally used magnetic stripe card. EMV technology is much more secure than that of magnetic stripe because it stores the card information in the chip in an encrypted digital signature. Unlike, the magnetic card embedded static data in the magnetic stripe card.
The EMV stands for “Europay, Mastercard, and Visa”, which was first developed by these companies in Europe and now adopted by most of the nation. EMV technology provides end to end encryption and hence a secure way of transaction. That’s the reason why it is being used widely by the customers and merchants are accepting the payment using the EMV card processing terminal.
How EMV Card Terminals Help Your Business?
- Globally Accepted: According to reports, 3.5 million U.S. merchants accept EMV cards and 842 million EMV cards were inflow at the end of 2018. With the huge adoption in EMV technology, customers are more likely to pay via EMV cards. So it’s prominent to offer customers the solution to accept EMV chip payments.
- Reduce Chargeback: With the EMV technology, the transactions have become more secure, which means less prone to fraud. Lesser the fraud, lower the chargeback disputes. And lower chargeback helps the business to maintain a better credit history and increase sales.
- Customer Loyalty: Lesser the fraudulent activities, more customer loyalty and trust. As long as you have built trust with the customers, the longer you take your business towards success. Customer loyalty is very crucial for any business.
- Cost-Effective: The EMV Card Terminal is cost-effective and easy to integrate. You can also process NFC payments using the EMV terminal.
Apply Today For A Cost-effective EMV Card Processing Solution
If you are also a merchant looking to accept EMV chip card payments, and even NFC payments, contact us today to get the free Quotes. Just fill the pre-approval form, and hit submit. We will get back to you with the solution you are looking for.
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