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EMV & Credit Card Processing
EMV or Chip and PIN?
I am not a person who regularly writes commercial type hubs but since undertaking a job for a credit card processing provider I have learned a lot about new technology and wanted to share some of the interesting facts about merchant services.
In the U.K, we had a type of payment gateway introduced in 2004 called 'Chip and PIN' which is also known as EMV(Europay, Mastercard & Visa) in the United States, it involves a small card terminal which is usually placed on the counter in a store and accepts credit and debit card payments.
Further to it being introduced around a decade ago in the U.K, the government and banks urged retailers through an advertising campaign to switch to this type of card machine because it is a lot more effective at combatting credit card fraud.
Types of PDQ Machine
Above is a regular countertop PDQ machine, it operates by inserting the customers card(chip side down) into the reader at the bottom or sometimes top. The machine then reads what data is stored inside the chip and matches it against the pincode you type on the keypad, if it is correct then it proceeds to contact the card holders bank and transfer the payment to the retailers merchant bank account.
This process is very hard for card thieves to steal information, they have tried one or two different methods but the card holder must also play their part to keep their details private.One practice employed by scammers was to place a hidden camera at ATM machines and record which pincode a person entered,this was accompanied by a second card reader placed over the genuine one and is used to make a clone of your card.
It is important to never keep your pincode in your wallet or close to where your card is kept(i.e stored on cellphone) and always report any suspicious attachments you spot on cash machines. The cloning technique has been widely publicized so citizens have no excuse for being caught out by this trick.
Photo courtesy of markhillary
One of the main reasons Chip and PIN technology was developed was because it is also extremely efficient, if you were born in the early 1990's then you probably recall trying to pay for something by the older 'swiping' methods and having to wait because your details couldn't be read on the magnetic strip of your card.
There is hardly ever network downtime on these new PDQ machines and you can be sure that charges to your customer are being sent electronically to your merchant bank account. It is better to contact a merchant services provider online because you have to pay a transaction fee, however, these are a lot cheaper than with your personal bank.
Credit Card Machine
The best part about the development of this type of credit card machine is that you can get different types to suit different needs, for example, the above picture shows a 'Bluetooth' portable PDQ machine the reciever plugged into the land-line.
You can also get card terminals which operate via broadband for even quicker connection, mobile devices for deliveries etc and all machines also print off a receipt for your customer.
Photo courtesy of hendry