How to Get Ready For New Chip and PIN Transactions

How to Get Ready For New Chip and PIN Transactions

Every year payment processors like PayJunction are required to renew their EMV certifications. These certifications allow merchant service providers to safely process transactions for their clients. Recently, PayJunction renewed and with the refresh came a new feature for the SmartTerminal. It can now accept chip and PIN transactions for customers whose card issuing bank prefers this method of transaction verification.

What are Chip and PIN Transactions?

The new chip and PIN transactions are similar to the traditional chip and signature method of payment. However, they have a different Card Verification Mode, or CVM. If you’ve set up a PIN code for your debit cards, you will be prepared to pay with a chip and PIN card. There are a few handfuls of credit card issuing banks that provide these new cards. Navy Federal Credit Union, Bank of America and Citibank are just a few.

What are Chip and PIN Transactions?

How Can Merchants Accept Chip and PIN Credit Cards?

Preparing for this transaction transition will be a bit more detailed for merchants, though. Currently, not all credit card terminals are capable of accepting Chip and PIN credit cards. For some terminals, it is as simple as updating your software. For example, if your business has a terminal that accepts Chip and PIN debit cards, an update will allow you to accept all Chip and PIN credit. However, many businesses are still using terminals that don’t have EMV technology, or cannot accept any chip cards. In the case of these business owners, a change in hardware is recommended either way.

How to Get Ready For New Chip and PIN Transactions

What Will Chip and PIN Transactions Do for Your Business?

It is better to get ahead of an industry update like this rather than lag be behind the curve. Your business could save hundreds of dollars in lost business at checkout if you just ensure a customer’s new method of payment is accepted. You can expect not only more business, but also safer payments. The chip and PIN transactions have already become popular in other countries. They have also proven to reduce fraud. In the UK, counterfeit fraud has decreased £81.9 million in the past 10 years. 

In the next year as this trend grows, your business may experience some growing pains. The credit cards that have both chip and PIN as well as chip and signature capabilities are programmed to choose one CVM based on the terminal. When these credit cards come into contact with your SmartTerminal that accepts it all, the card may request a PIN even if one hasn’t been set. You should prepare your staff to inform customers that this isn’t an issue with the merchant’s terminal. Instead, it is their card issuing bank who has not informed customers that a PIN is now necessary. Inform customers that each card issuing bank has different steps to take to set up a PIN for their credit card.

Any Other Questions?

Overall, the new Chip and Pin transactions will become as effortless as every other transaction your business is used to. This new verification mode doesn’t cost more than other card-present payments. Your customers can still request emailed or printed receipts. There’s even hardware that allows you to take Chip and Pin payments on-the-go. If you haven’t already, make sure that your terminal is customer facing and is EMV enabled. If your payment processor hasn’t told you, get in touch with a PayFrog representative to make sure.

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