In the year 2014, there is likely to be many new advances in technology. And in the world of credit and debit card acceptance, this is no exception. As you’re very likely aware, such cards have been moving away from the age-old magnetic stripe and moving towards the chip. This eliminates the need to sign a receipt for a purchase and adds the convenience of simply punching in a PIN code.
As Jessica Robinson writes on Seattle’s KPLU 88.5fm website, this new generation of credit cards are less prone to fraud and are already widely used throughout Canada as well as Mexico and countries in Europe and Asia. “They\’re known as EMV cards, chip and PIN cards, or smart cards,” she explains, “A small, circuit board-like square is embedded on the face of the debit or credit card.”
But how does the chip technology actually work? In the United States, it is often used in security badges and passports, reveals Robinson. She writes that according to Randy Vanderhoof, who is the director of the EMV Migration Forum, “the chip is actually a microprocessor that generates a unique, one-time security code every time you make a purchase. That code prevents thieves from reusing the data.”
Robinson notes that the newer chip technology is much harder to replicate that the older magnetic stripe. As a result, the new chip cards help for customers to better avoid potential fraud. So much so that she reports that these “smart cards” are the only types that are accepted in some parts of Europe. For whatever reason, however, the United States is slow to make the change.
Apparently, a struggle between credit card issuers and merchants in the U.S. is taking place. According Tammy Fleiger, who is the vice president of operations at the Spokane Teachers Credit Union, “It\’s kind of been the chicken and the egg thing…You know it doesn\’t make sense for us to upgrade our cards until merchants can accept it, and merchants don\’t want to upgrade their terminals until they have the card.”
Chances are, however, that her company will begin issuing the chip cards this year. Interestingly, this new technology isn’t really all that new, here in Canada. “I’ve been accepting chip cards for a few years now,” remarked one of our clients recently, “It’s very convenient. I like that my customers can just punch in a few numbers and don’t even have to sign anything. It’s quick and easy.”
As we’re sure you’re aware, Canadian POS Corporation provides Canadian business owners with POS terminals that read and accept chip cards with ease. Are you still using a machine that requires your customers to swipe their cards? We think that it’s time for an upgrade. Lucky for you, we make the upgrading process a very easy one. We also ensure that you’re paying the most affordable rates available.
Call us up at 1-877-748-2884 today! Staying up with the times is important if you want to keep your business afloat. And even more importantly than keeping it afloat is getting ahead. Being on top of today’s advances in technology is one way to do that. And accepting credit cards that contain the new chip technology is perhaps the best way to get your new year started.