The chip and pin system replaced using a signature to verify payments made on debit and credit cards. Instead, customers are asked to enter a four digit Personal Identification Number into a chip and pin device when they insert their card. This PIN number should only be known to the cardholder. The merchant’s bank authorises the transaction and the amount taken from the card.
Purchasing a chip and pin device
A chip and pin device can be installed as a fixed terminal at a till point, as wireless PDQ machine or as a mobile device working alongside your mobile network coverage. All chip and pin devices need to be able to connect with the bank authorising the transaction, connect to the central payment system of your business and have some form of power supply. A chip and pin device can be rented or purchased outright, depending on your needs. In addition, a fee will be charged by the bank for every transaction taken as well as a monthly service charge.
How a chip and pin device can cut costs
A chip and pin device will save your business money by streamlining and speeding up processes;
- Merchants no longer need to check a cardholder’s signature which speeds up every single transaction at a till or point of sale. Not only will this reduce customer waiting time, but it allows employees to use their time more efficiently.
- A mobile chip and pin device can be taken to the customer and goods or services delivered or undertaken at home can be paid for directly with the driver or company representative. This will greatly reduce the amount of invoices for payment which will need to be made, cutting postage costs as well as the costs associated with waiting for or chasing up late payments, such as bank charges or bailiff fees.
- Reduction in chargeback administration costs.
- Due to the increased security associated with the chip and pin system, less staff are needed to monitor sales points. This means that more automated payment systems can be set up, such as self service tills at supermarkets, pay at pump schemes in petrol stations, vending machines with card payment options, ticket machines and car park pay points. This cuts workforce costs as well as speeding up how payment is taken.
Saving your business money by reducing theft
Sadly employee theft is a real threat to profits and is especially prevalent where staff are asked to handle large amounts of cash. The more sales are carried out on a chip and pin device, the less money will be left in tills for opportunist theft. Other types of fraudulent activity are also significantly reduced because the customer never gives their card to the merchant, reducing the opportunity for wrong figures to be entered deliberately.
Finding the best deal on a chip and pin device
Once you understand all of the expenses, and more importantly, the benefits, associated with installing a chip and pin device in your business, you will need to shop around to compare the most cost effective deals, without compromising on functionality.No tags for this post.