Though Chip Cards Are Still Slow, They Protect You From Fraud

Dec 22, 2016

One year has passed since EMV technology arrived in the US credit card market. Chip cards are designed to make transactions safer and they really do this. According to a NerdWallet survey, the majority of consumers approve the EMV liability shift in the US.

Happy Birthday EMV

MasterCard reports 88% of its credit cards are chip-ready, but 67% of all payment terminals in the US aren’t ready to accept chip payments. Visa says 84% of the merchants who aren’t ready to accept EMV are now switching. Taking into account the fact how other countries are adopting EMV chip technology, Visa thinks the upcoming 4-5 years will bring 90% merchant acceptance in the US.

When it comes to the future of payments, EMV is going to improve. This is because more and more merchants are switching to EMV technology, so the experience across stores is going to become more consistent. On the other hand, processing speed is going to improve as well.

According to Stephanie Ericksen, vice president of risk and authentication products at Visa, Visa’s new Quick Chip technology offers a form of EMV with much higher efficiency. Quick Chip generates the cryptogram faster, and the card can be removed in some 2 seconds or less.

Ericksen notes that Quick Chip and MasterCard’s equivalent M/Chip Fast can be used for stores and their card issuers much easier than the EMV standard. Besides, no new hardware is required for these technologies.

Evolution in the Payments Ecosystem

The evolution in the payments ecosystem is not merely based on improvements associated with card-based technologies. Stores consider offering their own payment experiences in apps, focusing on convenience and loyalty.

If you’re looking for a secure and low-cost merchant account, consider turning to EMB is the top high risk payment processor in the US that boasts an A+ rating with the BBB. EMB is one of Inc 500’s Fastest Growing Companies and is rated “A” by Card Payment Options.

Starbucks uses its app trying to combine payment options and loyalty, and more merchants are expected to match this experience. Besides, retailers will perhaps match the easy checkout offered by Uber.

As for chip-and-PIN credit cards that require a PIN and not a signature, these won’t be adopted in the near future because of cost and habit. It is estimated PIN acceptance for credit cards is going to cost issuers over $2.6 million to utilize. It will save them $850 million over 5 years to prevent fraud.

Based on the latest data from MasterCard, EMV has helped merchants minimize payment processing fraud by 54%. Though the progress is slow, but the future is going to be bright.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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