UK CHIP AND PIN FOR CUSTOMER PRESENT TRANSACTIONS
As part of the overall strategy to reduce fraud when taking credit and debit card payments (which was running at some 1 million pounds per day in the UK) chip and PIN technology was introduced within the UK in 2004. All major high street retailers have now implemented integrated chip and pin credit and debit card systems, with most smaller merchants adopting bank supplied chip and pin terminals as an easy upgrade from their card acquiring bank. EFT-POS chip and pin solutions offer some unique features for taking card payments in comparison to bank supplied terminals including faster authorisation and cost saving technology.
HIGHLIGHTS OF EFT-POS CHIP AND PIN SOLUTIONS
- Terminals quickly authorise credit and debit card transactions over a permanent internet connection - in as little as 8 seconds.
- Approved by all major UK acquiring banks - enabling you to maintain the same equipment and service and yet change merchant service provider if better rates on card transactions are offered.
- Do not require a phone line for card transactions - so do not tie up your main phone line or require an additional line.
- Chip and pin terminals utilise a secure internet connection in order to obtain card authorisations.
- Terminals share the internet bandwidth enabling you to have any number of terminals, as well as PCs and other internet devices all on the one internet connection - you do not need multiple phone lines..
- Terminals can be configured with multiple merchant accounts
- Terminals support purchase, refund, cash back and gratuity transactions
- Centralised reporting can consolidate card transactions from multiple chip and pin terminals.
- Wireless options allow card payments to be taken at table within a restaurant, hotel rooms and bars or completely mobile on the doorstep, at shows and fairs or by the side of the road
- Can be easily integrated into POS software and systems.
TRANSFER OF FRAUD RESPONSIBILITY
It is expected that magnetic swipe and chip & PIN will coexist for many years. However in January 2005 the liability for fraud passed to the party that is the 'weakest' part in the chain. What this means for you as a Merchant is that if the card taken supports chip and PIN and your acquiring bank supports chip and PIN but you are only using a magnetic swipe, then if the transaction turns out to be fraudulent then you will have to bear the cost. A compelling reason to move to adopting chip and pin.