Credit and debit cards have been on a steady rise in popularity for shoppers, and with good reason. With a credit card, you don’t need to pay in cash, and you can pay off the amounts owed at a later date. With a debit card, you can pay in cash, but you don’t need to actually carry that cash in a pocket, purse or wallet. This makes things generally much more secure and safe for a shopper.
But with the use of modern credit and debit cards, there are a few ways that payment can be properly verified. The EMV security protocol is a popular choice, which has been used in many other parts of the world, but only came into more widespread use in America in October 2015. EMV, which stands for Europay Master Card Visa, is a system that requires two forms of confirmation before a purchase goes through.
All EMV payments have one thing in common; the card that is used for payment has a chip inside. This chip, when inserted into a payment terminal, will make a confirmation check with the issuing company or bank to confirm that the actual physical card itself is legitimate. This is the first line of defense to confirm that the physical object that is the card is not, itself, come kind of counterfeit or forgery. The inclusion of this chip confirmation system already prevents a significant portion of the counterfeit community from being able to for these cards as the costs required to replicate this and then satisfy an online confirmation are too expensive for most criminals to justify the expense.
The second form of confirmation is not universal, and there is a bit of variance here. One popular solution is to have a signature required, which most people using credit cards are familiar with. Of course, as with some credit card fraud cases, signatures can be forged, so there’s still a little bit of a security risk here if a legitimate card is stolen and thief also has traditional signature forgery skills.
The other form of confirmation for EMV cards is a PIN or “personal identification number.” In most cases, provided a card holder does not share this number with anyone, this is usually the more secure form of security. It is extremely unlikely for a forger to get hold of a PIN number if a card owners has not shared the details anywhere. This would require extra effort on the part of fraud artists to watch a card owner use a PIN terminal and in many cases is simply not practical.
If you’re looking at different forms of payment processing for your own business, especially if it’s retail, then ensuring you use up to date EMV payment systems is one of the safest moves you can make for yourself and your customer. A PIN or signature system makes for smoother shopping experience for everyone.
Posted in Payment Processing on Nov 01, 2016