One of the routine components of making a transaction at a credit card processing terminal is giving a slip of paper to your customer to sign. However, many companies have adopted newer technology and eliminated the need for a signature as a result. Credit card signatures are becoming an obsolete practice in favor of the chip-and-PIN technology. The magnetic stripe will still be on credit cards in the near future, but for security purposes, the stripe will be eventually removed. Here’s what you need to know about the end of the credit card signature era.
Why Credit Card Signatures Will Be Obsolete
Chip-and-signature credit card transactions aren’t nearly as secure as chip-and-PIN transactions. With the forthcoming chip-and-PIN technology being adopted across the country, consumers will have to enter a PIN as a second authentication method at any credit card processing terminal. This is a more secure option than a signature, because the PIN is either right or wrong. Plus, how many cashiers actually look at the signature on the slip and match it with the signature on the back of the credit card?
Impacts for Businesses
Businesses will also be impacted positively with the new merchant processing changes. One of the benefits is limiting your liability, since chip-and-PIN transactions are more secure. Offering the most secure payment processing options will help protect your business and your customers from fraud. Another advantage is speeding up checkout lines, as customers won’t have to wait to receive a printed slip and then sign it. Instead, they will quickly enter in a short PIN.
Switch to Chip-and-PIN to Protect Your Business
When it comes to card payment solutions for small business, you don’t have to break the bank to offer your customers the best payment options. The chip-and-PIN technology will be the norm in the very near future, so businesses of all sizes should make the switch today to upgrade their credit card processing terminals. Your transactions will be more secure as a result, and your company will have the perception of being on top of the technological trends as well.
Precision Payment Systems makes merchant processing easy for businesses in New Orleans and surrounding cities. The end of the credit card signature era is upon us, so now is the time to get ahead and boost your security and upgrade your payment solutions. To learn more about this technology and how you can easily implement it into your payment practices, contact us today.