Most SMEs (Small and Medium Enterprises) will appreciate now that there is a huge demand for credit card terminals, and since Chip and PIN technology emerged retailers without the suitable card terminals have lost out on important business. The debit / credit card is going to change into the payment choice of the public very quickly and it’s taking effect already.
What precisely has brought about this?
This is pretty much due to its convenience and simplicity, but you can also get other factors having an influence on the growth of debit card payment processing currently. Not least among these things is of course the abolition of the cheque guarantee card and the pending abolition of the personal cheque. These matters have forced individuals who would commonly pay by cheque into trying to find other options, and with no ready supply of cash, a debit / credit card works wonderfully as it’s easier than a cheque and the funds are transferred from your individual bank account straight to the merchant in reduced time.
Safety is yet another aspect that attracts customers to using debit / credit cards. It’s a lot easier and safer to carry a card and pay for goods and services instead of risk carrying substantial amounts of cash that may get stolen and not replaced. You could say that the same thing may happen with a credit / debit card, however the debit card has many more measures available to prevent its fraudulent use. Also, should your credit card be thieved and somehow used fraudulently, the banks have a system in place to refund the person for monies lost.
Low theft threat
Should you take your credit card out with you and obtain goods and services in card terminals then all you have to have is your PIN number. Chip and PIN terminals can offer the greatest security since the customer can’t use the card unless they know the 4 digit PIN number; this is naturally the same at cash terminals. Web payments are quite different, but of course you will always need to know the address of the card owner, their complete name and any passwords that may exist as a result of security feature Verified by Visa. This feature on Visa debit cards has reduced online web payment fraud considerably.
Have you considered contactless technology?
What exactly happens given that you have a card which is capable of going from shop to store spending up to?10 on services and goods that doesn’t require a PIN number? There are issues here only if you don’t realise you have lost your credit / debit card or had it stolen. If this is the case then quite simply anyone may get hold of your card and go from store to retailer buying things. The only real deterrent to fraud with contactless technology currently is that occasionally a retailer may be required to do a full transaction with the Chip and PIN unit in order to verify the card users identification etc.
In either case, whether it is with contactless debit cards or standard credit cards to use in Chip and PIN terminals, the retail world, along with debit and credit card processing are moving towards a future in which the use of plastic payments is the normal thing to do.