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Long gone are the days of clunky payment processors, slow transaction times, and rampant credit card fraud — today, EMV card readers allow businesses to embrace a new era of secure and efficient checkouts.
Unlike outdated magnetic-stripe readers, EMV readers use chip technology to encrypt customer card details. This means businesses get the peace of mind that comes with robust fraud protection while shoppers enjoy a faster, more convenient checkout experience.
In this guide, learn what EMV card readers are and more importantly, how to use them for efficient in-person payment processing.
An EMV reader is a card terminal that uses Europay, MasterCard, and Visa (EMV) technology to process transactions using chip and pin, chip and signature, contactless, and mobile payments. The technology was developed by a range of major card providers to create more secure, smart card payments. It is a type of electronic payment system.
These chip card machines read the smart chip in an EMV payment card instead of the magnetic strip and use the data it stores to process the payment. Most common modern card readers, such as the PayPal Zettle card reader, are also EMV readers.
The key to EMV’s success is the microchip. EMV chip readers can read the data stored on the chip in an EMV payment card. These are the standard payment cards issued by banks and credit card companies that we’re already familiar with. The customer can pay with just a tap if their card is contactless, insert their card and use their PIN, or make card-not-present payments using their smartphone.
Customers’ payment data is more secure with EMV because dynamic authentication frequently encrypts it. This dramatically reduces the possibility of card data being read, intercepted, and copied by someone or something that shouldn’t have access.
Contactless EMV technology uses radio-frequency identification (RFID) technology, which communicates with the card reader and securely authenticates it. The EMV reader creates a unique transaction code, ensuring the payment is processed correctly only once, and that the payer’s card details stay private. Customers can access this same technology through mobile payments without having to carry their physical card with them.
EMV is simple for merchants too. Businesses can connect a phone or tablet to their EMV card reader using Bluetooth technology, making their point-of-sale (POS) experience smart, affordable, and portable. Even the smallest business can now access a sophisticated, intuitive POS system that speeds things up for their customers and reduces their fraud liability.
Some top benefits of EMV card readers include:
Just like there's no universally beloved payment method, there's no one-size-fits-all EMV chip reader. Here are some of the most common types of EMV chip readers that cater to different business needs and shopper preferences.
Shoppers can pay up to a certain limit, typically around $200 at a time by just tapping their card or phone on a contactless card reader. These card terminals are fast and simple, whether customers are paying for coffee or something larger.
EMV readers also enable customers to insert their card and type in their PIN to authenticate a payment. This is key for larger payments, usually those over $200, and to confirm the card’s security details periodically.
Shoppers can securely pay on a portable EMV chip reader with their bank or credit card by syncing it with their smartphone. Apple Pay and Google Pay are just as protected from fraud and are even more convenient for the customer.
Adopting EMV technology is essential if your business wants to protect its customers’ payment data, speed up purchases, and reduce liability for fraud. The liability shift from card issuers and merchants is a big incentive to start accepting this ultra-secure form of payment, reducing costs and effort for organizations that demonstrate they take security seriously.
Your customers will thank you too. EMV chip readers provide flexibility, security, and convenience. With readers and terminals coming in increasingly small and affordable packages, it’s never been easier to upgrade to EMV chip technology.
The benefits of an EMV virtual terminal are clear, as discussed throughout this article. With this smart technology, your business can take hassle-free payments fast, with added layers of security and authentication. You’ll gain understanding and insights; your customers will gain speed and peace of mind. EMV is the future of in-person payments.
Whether you're a bustling cafe, a pop-up shop, or an established retailer, finding the perfect EMV reader for your payment processing needs is essential.
Are you a high-volume business processing hundreds of transactions daily? Or do you own a boutique with a smaller transaction flow? Larger businesses might benefit from a countertop payment terminal with fast processing speeds and robust features. Alternatively, if you have a lower sales volume, a mobile EMV reader or a PayPal card reader might be a more cost-effective solution.
Does your business operate in a fixed location or are you always on the move? For businesses requiring portability, like food trucks or market vendors, consider a mobile EMV reader that connects to your smartphone or tablet. Meanwhile, for businesses in a traditional retail setting, a countertop payment terminal offers a reliable and stationary solution.
Your chosen EMV reader should seamlessly integrate with your existing POS system. This compatibility ensures smooth transaction processing, efficient data management, and a streamlined checkout experience for your customers.
Look for EMV readers that offer advanced security features like end-to-end encryption and tokenization to protect sensitive customer data. A secure EMV reader safeguards your business from fraud and instills confidence in your customers.
In today's world, contactless payments are a must-have. Your chosen EMV reader should support NFC technology for tap-and-go payments via mobile wallets like Apple Pay and Google Pay.
The transition to EMV chip card readers is an investment in the future of your business. By embracing this technology, you're not only boosting the security and efficiency of your payment processing but also fostering trust with your customers.
So, take the time to explore the best EMV card reader, whether it’s traditional countertop terminals or mobile solutions like PayPal card readers.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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