Earlier this month we started a list of eight facts you should know about EMV cards. If you missed the first part, check it out here. If not, continue reading for the next four facts:
- EMV gives retailers access to big data. Mobile payments have made it much easier for stores to take advantage of the big data trend, but magnetic cards are holding them back. EMV will allow the relationship between customer and retailer to get to the next level by providing information on when they purchase what, and how often. With this understanding, businesses will be able to provide a previously unmatched level of personal customer service.
- The transition to EMV is happening fast. We’ve already covered how liability is changing on Oct. 1, 2015—but that’s not the only reason merchants should switch. By the end of the year, the number of EMV cards circulating America is projected to climb to 1.1 billion. That’s a lot of customers whose favorite way to pay may be changing. However, about 8 million point of sale (POS) terminals still need to be upgraded to accept all those EMV cards. Make sure your business allows customers to use their favorite payment options.
- EMV cards are dipped, not swiped. Consumers are already used to dipping their magnetic cards at the gas station or ATM. This will become even more common with EMV, although the dip will take a bit longer than consumers are used to. When EMV cards are dipped, data is transferred between the issuer and the tiny computer within the card, and a random transaction code is generated. This takes only slightly more time than a magnetic swipe, but if the cardholder were to quickly pull the EMV card out, the transaction would be denied. In essence: Consumers will have to get just a little bit more patient.
- Chip and PIN may make travel easier. Since Europe has been using EMV for more than a decade, American travelers have found some difficulty using credit cards there. European merchants are much more likely to accept cards with a chi embedded, but that doesn’t mean they’ll accept all: Chip and PIN cards the norm in Europe, so if you end up with a chip and signature card, you may be out of luck overseas.
The switch to EMV cards is finally happening in America. Find out how to get ready by contacting PayProTec at (574)269-0700 or visiting www.payprotec.com.