Merchant services have begun utilizing credit card machines that have small inserts at the base for new credit cards. Customers in the US are familiar with the magnetic strip, but a new kind of security standard called “Europay, Mastercard, Visa” (or EMV) is here to stay. Compliance isn’t a requirement for every business, but it certainly helps to get on board now while it’s optional.
What Makes EMV Secure
When a merchant account processes payments, it reads the payment data from the customer’s card. In the past, this data came from a magnetic strip that was easy to hack. EMV creates a special transaction number to authorize the payment, so when thieves try to steal that information they end up with a unique identifier that won’t function outside of that transaction.
Experts hope this will help customers and retailers avoid fraud.
Using EMV
There are two steps to small business credit card processing with EMV cards. The customer will insert his or her EMV card into the terminal, where a brief processing period authorizes the transaction. Data flows from the card to the merchant processor, which helps to verify the transaction and payment details. These transactions do take a bit more time to process, but the safety is worth the wait.
Final Thoughts
There is no way to completely stop fraud in its tracks, but we can take steps to dramatically reduce instances of it occurring. A user’s card may still be used if his wallet is stolen, for instance, but cutting instances where fraud can occur is important to everyone.
For six years running, Charge.com Payment Solutions, Inc. has been voted the most affordable and simple merchant account online.
