At One payment, we love keeping our readers up-to-date on the latest topics in the business world. In this article, One Payment will enlighten you on chip card issues which have become more prevalent recently.
Chip or Swipe?
While credit card transactions used to be completely by swipe only, the October 2015 deadline brought about a significant change. Now, consumers must insert their credit card into a reader, which provides for a more secure transaction. However, while more secure, paying with a chip card takes significantly longer than swiping, which has resulted in frustrated customers. Combine frustrated customers with long lines during the holiday season, and your long day just got longer.
In a world where speed and convenience are key, customers are having a hard time understanding why a transaction with a chip credit card takes so much longer. The extra steps involved with paying with a chip card are to ensure that all of the bank information is correct, but an unfortunate side effect of this verification is the delay in processing the transaction.
In addition to the extra verification steps, the chip in the card creates its own unique code for each transaction that is made. In the old days, the magnetic strip would simply use the same code over and over again each time the card was swiped, which led to loopholes in security.
Don’t Forget the Merchants
In addition to frustration for the consumers, the merchants have now been required to upgrade their point-of-sale equipment. For a small business who wasn’t anticipating new equipment, this can set them back significantly. However, the liability and penalties for not having the new equipment would be even worse.
While consumers can be frustrated with the new technology, they must remember that it was created for their own good. The last thing anyone wants is a case of identity theft, and while some transactions might take longer, it will serve them well in the long run.