The development of the Chip and PIN terminals into the worldwide market has enabled fast and efficient methods of conducting payment transactions using credit and debit cards. The integration of a smart card chip into the regular cash cards has been well received globally, with retailers and merchants obtaining terminals to accept payment through the Chip and PIN mechanism.
Why offer Chip and PIN services
Chip and PIN terminals were first introduced in the UK in 2006 as a method to increase the efficiency of card payments. The previous method of swipe cards and verification through magnetic strip was quite efficient, however it was likely to cause unnecessary delays when large volumes of payments were being processed. Due to the lag time between payment transaction and payment verification, the method of using the magstrip was inefficient and slow.
With retailers introducing Chip and PIN terminals in their businesses, the online processing of payment transactions has become much faster and efficient. There is no lag time as the PIN is verified immediately, allowing the cardholder to complete their payment transaction in a very short period of time.
One of the main benefits of Chip and PIN terminals is that they allow safe and secure transactions. The security feature; Personal Identification Number (PIN), ensures it is only known to the cardholder thus reducing risk of unauthorized card payments. It is important that the four digit PIN code is kept secret as it grants access to the funds in the cardholder’s account.
Chip and PIN has been a mechanism that has been well received worldwide as it offers safe, efficient and fast payment transactions. In order to become a provider of card payment solutions it is advised that companies seek the advice and guidance of a professional consultancy firm.