"If things run smoothly not only will there be a reduction in fraud, but transactions will be quicker"
Anyone involved in retail of any kind will tell you the importance of credit card security. While it is vital to provide your customers with a quick and easy method of payment, it is also essential to combat fraudulent behaviour.
To make sure the transaction is genuine, two things need to be established – that the card is the real deal and that the person using it is the true owner. With this is mind the next generation of credit cards has been developed aimed at halving the number of illegal transactions and significantly reduce the administrative costs related to it.
From December 2004, all credit cards were reissued and adoptied the new Chip & PIN system. The biggest change of this kind since decimalization, it has triggered a change in the payment behaviour of some 42 million cardholders. In addition it has introduced a new system to which 1.5 million retail staff are expected to become accustomed to.
As the use of the system grows - 50 PIN verified transactions now take place every second - the more customers are likely to expect your business to adopt it, so its important to be aware of what it will involve now, or face seeing your profits go elsewhere in the future.
Businesses adopting the system need to put in place the training and technology that will enable Chip & PIN to work. If things run smoothly not only will there be a reduction in fraud, but transactions will be quicker. There will be less reliance on till staff, with the possibility of more widespread use of unattended point of sale machines.
As the overwhelming majority of small businesses are supplied credit card transaction equipment by a bank or other provider, you should have already received information on Chip & PIN.
When the day finally comes when your new equipment arrives, you should receive detailed instructions or, depending on who provides your credit card system, an engineer to install the terminal and provide user training.
From this point onwards it is up to you to make yourself as familiar as you can with the new system, and make sure your staff feel comfortable with it, including what to do when things go wrong, so you can hit the ground running.
For further information about the Chip & PIN system click go to www.chipandpin.co.uk
