Summary: Most credit card terminals today come with chip readers but why do they exist? Read below to learn more about the EMV chip readers and why they are helpful.
Technological advances have eventually have a way of working themselves into our everyday lives. As a business owner, you may have noticed that most credit card terminals have chip readers on the bottom. What exactly are they and why are they so important?
What is the Chip?
These credit card readers have become increasingly popular because the majority of credit and debit cards offered by banks now come with EMV chips. These chips were designed to provide consumers with an additional layer of security. Although the technology has been widely used throughout Europe for several years now, the chips did not make their way to the United States until around 2015.
Traditionally, customers have needed to swipe their cards in the terminals, enter their PINs, and sometimes provide a signature. With the chip readers, they simply need to insert their card and the terminal will handle the rest. These chips make transactions safer and more convenient for shoppers.
How Does it Increase Security?
The EMV chips increase security by being able to do something traditional magnetic strips cannot: effectively combat fraud. Charge.com and other merchant service providers offer secure terminals that support these chips. When a customer inserts their chip into the reader, a specific code is sent to the terminal. If the terminal does not recognize the code that is being transmitted, however, the transaction will not be completed. Thieves will have a tougher time stealing if they do not have the actual credit or debit card with them.