Transitioning to PIN requirement for credit

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Chip-and-PIN Credit Cards — the Final Nail in the Coffin

Swipe and sign is already on its last legs — but there is one final piece of the puzzle that will likely speed up the demise of this time-honored ritual.

Already the default worldwide, Chip-and-PIN credit cards are becoming more popular in the United States — the last major market to adopt Europay, Mastercard and Visa (EMV) payment processing.

These chip-enabled cards offer much greater fraud protection, since:

  • The embedded security chip is very difficult to clone.
  • The EMV card never leaves the customer’s hands.

Most important? Authorizing each purchase requires a personal identification number (PIN) that only the customer knows.

This final step is far more secure than requiring someone’s signature. As Chip and PIN becomes more widespread throughout the U.S., the retail and payment card industries will likely abandon swipe and sign forever.

The bottom line to your business is more frequent requests coming through your point-of-sale system for customers to enter a PIN, whether it be credit or debit.

Direct news from Direct

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We call it the EMV slow dance.  Check out the recent article by Mike Strawhecker.  We couldn’t agree more here at Direct Payment Systems!

What is stalling EMV at small merchants?

VP / Director of TSG Metrics at The Strawhecker Group

Three key impediments that are stalling EMV at small merchants:

Limited awareness: While improving, EMV awareness among small merchants remains low, with many unfamiliar with the technology, the upcoming liability shift, or both.

Absence of a clear ROI: Many small merchants are unconvinced by the business case for the rollout of EMV. This is particularly true for merchants whose transactions are dominated by low-ticket items, such as quick-service restaurants. Here, the fraud and chargeback risk is so minimal that many argue any losses brought on by the liability shift would still dwarf the cost of an investment in EMV technology.

A story they’ve heard before: Small-business owners are incessantly hounded by vendors to upgrade to the next greatest technology. To many, the EMV story seems all too similar to many told in the past, causing it to fall on deaf ears.