Recent reports have clearly stated that cash transactions are less secure as compared to card transactions. There are many reasons to support this claim, cash transactions cannot be traced properly while card transactions end up reviling a whole list of where particular payments were made.
Paying in cash causes both consumers and merchants to face challenges, as they both have to keep track of the incoming and outgoing of cash. Cash payments are not recoverable; due to its anonymous nature cash once lost cannot be recovered. Credit card payments, on the other hand, can be declined or reversed.
Such factors support the notion that it is favorable to use cards as a method of payment. The markets have seen a decline in cash transactions, and a mighty increase in the usage of credit cards. Imagine keeping a fat wallet or fumbling through wads of cash just to make a payment, doesn’t seem like a pleasant site, does it?
So how is this transition from cash payments to card payments going to affect the market? Well, this might cause a problem for small and medium-sized business owners, as many of them do not possess a method of accepting card payments. A great deal of these merchants fears getting deceived by fraudsters if they were to implement card machines. Getting duped is something that merchants shouldn’t be afraid of because new card reader technologies being introduced in the market come with the provisions to protect against fraudulent efforts.
What are these new technologies? Well, we have made a list of the 3 basic card readers that are available in the market:
Swipe Card Reader
This is one of the simplest types of card readers, which are present in the market. It requires the person to swipe their card alongside the physical terminal present on the card reader. The card being used in such cases possess a metallic strip on the side, it is only after swiping the payment is initiated. This type of payment is pretty simple but it can easily be used and replicated by fraudsters.
This type of card reader may soon be out of fashion due to various risks and newly emerging card readers in the market. But even so, it still facilitates a majority of payments made till dates.
EMV Card Reader
EMV stands for “Europay MasterCard Visa”, it has become the newly globally accepted method of payment. This card reader technology has witnessed an increase in its usage due to the fact that it provides with safe and easy transactions. SumUp a company which provides with cards and modern terminals has come up with such EMV card readers that work with a Bluetooth based interface. To know more about the company and what all it provides you can visit their website, https://sumup.com/
All the payments made through this terminal are made with cards that are equipped with encrypted chips. These chips store all the essential data required to process a transaction between a customer and a merchant.
An EMV card reader provides protection against fraudulent payments, as payments cannot be made without the presence of the chip encrypted card. Fraud for card users is only possible in cases of card-not-present like an online transaction or giving your card details over the phone.
NFC Card Reader
This is one of the most modern methods to make a payment, though it is just starting to gain its popularity. “Near Field Communication” is what NFC stands for, this card reader required the presence of the card nearby to make a payment. All NFC equipped cards, smartphones and devices that work on the principle of RFID (Radio Frequency Identification) are eligible to make payments from this terminal.
It is just as safe as EMV card readers, and NFC card users also have the provision to make payments by just simply “tapping” on the machine.
Small and medium-sized businessmen are concerned that they might end up paying hefty bank transaction fees if they were to accept card payments. Well even though it may seem like much, it is advised merchants welcome credit card payments as it will only increase their income.
Many customers only pay with cards, and if merchants do not act upon this they might end up losing customers. Also, there are companies that provide card readers and charge a low transaction fee. SumUp is one such company, with transaction fees as low as 2.65% per transaction. Get hands on your own card reader, visit their website https://sumup.com/
The company gives out instant payouts, something which you don’t find in every company. SumUp is Europe’s No.1 growing company, which gained glory in Europe and South America. They have opened up a new office in Boulder, Colorado and are branching their way through the American market.
While you have gained knowledge of the type of card readers, you should also be fully aware of the “Liability Shift“. What is it, you ask?
The liability shift was introduced in October of 2015, which stated that in the “case of an in-store counterfeit payment, the party which has not implemented chip technology will be held responsible and the liability will shift to them.”
We can elaborate this with the help of a few scenarios.
An in-store counterfeit payment was made by a customer using a metallic stripe card on a swiping machine. The liability will shift to the customer.
An in-store counterfeit payment was made by a customer using a chip embedded card on a swiping machine. The liability will shift to the merchant because the customer had made an investment in chip technology to ensure safe transactions but the merchant had not done the same.
An in-store counterfeit payment was made by a customer using a chip embedded card on a chip-based terminal. In such a case, the liability will shift to the customer.
So it is beneficial that merchants and consumers both invest in chip technology, as it guarantees safe and easy transactions.