WHAT DO CONSUMERS THINK ABOUT EMV VS. MAGNETIC-STRIPE TRANSACTIONS?

Dec 16, 2015

“If there is no struggle, there is no progress.” – Frederick Douglass

A recent survey in the field shows that consumers appreciate the added security of EMV chip cards, but many of them consider the new transaction process to be bothering. Some consumers say they even avoid stores that require inserting a chip card into a POS terminal or using mobile payments.

Study Reveals

According to a survey report represented by Mercator Advisory Group Inc., a trusted advisor to the payments and banking industries, 29% of 3.008 consumers surveyed used a chip debit, credit, or prepaid card. This is approximately 3 times the 10% who used a chip card, according to a similar study conducted in 2014.

About 35% of consumers having a chip card claimed using EMV readers wasn’t annoying to them, even though it could be time consuming. 34% of consumers surveyed appreciate stores that gave them the opportunity to process a chip card designed for EMV payment transactions. 16% of respondents were annoyed at checkout. Specifically, the annoyance or bother factor counts for 31% among young adults and 27% among mobile payment users.

Primary data services manager Karen Augustine, the author of the report, says consumers like EMV, but they don’t like being bothered by it.

Consumer confidence and appreciation are of special importance in the hotel industry. Those who own hotel businesses know it is vital to meet customers’ demands and preferences. Choosing emerchantbroker.com for your hotel business, you can enjoy a secure and reliable hotel credit card processing. With EMB, the leading payment processor in the field and the top-rated high risk merchant account provider in the United States, you can expand your business and grow your revenue with ease.

Other Factors Regarded As Annoying

According to Karen Augustine, not only the factor of time but also different other factors make EMV transactions more bothering than magnetic-stripe ones. Transactions may not be processed if the card isn’t inserted quickly enough, and consumers should know they have to get it back.

As it is expected, EMV is going to influence mobile payments. The point is that the majority of EMV terminals are designed to support near-field communication or NFC contactless payment transactions. However, the wish to get rid of the bother factor may make people use mobile payments, especially in those cases when consumers know they will get rewards or points through mobile-pay services.

Mercator also surveyed the attitude held by consumers towards Apple Pay mobile-payment service. Nearly 80% of consumers who had signed up for Apple Pay had loaded at least 1 credit card. 60% had loaded a debit card. 55% had credit cards linked to their last Apple Pay transaction, and 45% had debit cards linked to the mentioned transactions.

The margin of the results error is plus or minus 1.8%, and the confidence level is 95%.

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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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