Banking cards have significantly changed the way we go about our finances. Since their introduction around the 1970’s in London, this now essential means of effectuating transactions has evolved tremendously.
Maybe one of its most known forms would be the magnetic stripe cards that were widely used back in the early 2000’s, and that still exist and operate to this day. While magnetic stripe cards managed to bring about a step up in terms of security standards, it did not take long for thieves to find loopholes that would allow them to commit even more significant fraud. For instance, the type of card at hand is actually very easy to clone, therefore, riskier to use on a regular basis by today’s standards. However, as threats evolve and defeat security infrastructures, security infrastructures, in turn, develop to counter newly surfaced forms of fraud and theft. New types of cards have already emerged, and several others are soon to see the light of day.
EMV cards constitute industry standard
EMV cards have become the new industry standard. Created as the result of a partnership among financial giants Europay, MasterCard, and Visa, this specific type of card benefits from technology that makes it way safer than its predecessor. For instance, instead of storing information in a magnetic stripe – from which data can easily be accessed – EMV cards recourse to pin-protected, encrypted chips. Since their introduction, fraud has significantly decreased in the United States, therefore creating a safer space for myriads of customers to effectuate their daily transactions. The EMV standard has eventually reached a larger scope and is now managed by EMVCo, a consortium with control split equally among Visa, MasterCard, JCB, American Express, China UnionPay, and Discover.
Small businesses are yet to transition
Given how EMV cards are fairly recent, some businesses have not adopted the standard yet. It has been shown, however, that more and more businesses would support EMV-based transaction as of lately, therefore ensuring a steady increase in the spreading of the technology. Many small businesses are still trying to figure out whether switching over to EMV would be the best decision for them, and maybe the best solution to their questioning would be to present them with the numerous advantaged that can be spawned from using the infrastructure at hand.
EMV cards are safer
First and foremost, it is quite obvious that the biggest advantage that a business could gain out of the adaption of an EMV-based infrastructure would be higher security. Indeed, EMV cards have been built to be safer, and therefore ensures fraud reduction targeting both businesses and their customers. Furthermore, in case of malicious activity, card issuers such as Visa, Discover, American Express and MasterCard have stated that issuers and merchants that do not support chip technology will be held liable for counterfeit fraud. In this particular context, it becomes quite a risk for a particular business to reject EMV standards, as the eventuality of theft could have a significant and negative impact on its day to day operations. And while the switch might be overwhelming at first, you can be sure that your business’ productivity will flourish after the adaptation period.
EMV cards are convenient for customers and merchants alike
EMV cards come with more than just added security. In fact, they can even provide for convenience on customers’ end, therefore also increasing the transaction flow towards a particular business that supports the infrastructure at hand. One of the facilities provides by EMV cards is pay-in-aisle, which allows customers to pay for their goods no matter where they are located. Used to the right proportions, this can allow businesses to be very flexible in terms of location, hours, and compatible media and devices. For instance, EMV support would allow a business to reach out to a larger demographic by making online selling possible.
Customers prefer EMV cards as a means of payment
Customer satisfaction is one of the most important aspects of any business, especially when the latter is trying to grow beyond the status of a small enterprise. Quite obviously, catering to what the customer really wants and caring about the little details helps a lot when it comes to this particular aspect.
It has been demonstrated that more and more customers have a preference for EMV infrastructures given the multiple benefits that they can reap through this specific means of payment. According to a recent survey carried out by NerdWallet, an astounding 78 percent of respondents are pleased with EMV cards. In addition, out of the 2,000 United State-based adults surveyed, 47 percent believe the cards boost the security of their daily transactions and nearly 50 percent reported that it is indeed their preferred method of payment. In the light of this information, it would be quite obvious that EMV cards are the way to go for those small businesses that are still relying on older infrastructures.
Adopting EMV can help you stay in the competition
It is a well-known fact that small businesses often struggle when it comes to keeping up with their bigger rivals. Adopting EMV in this context would actually allow business owners to stay in the competition. Indeed, implementing EMV compatibility can be expensive, but it is guaranteed to pay off in the long run as the infrastructure will definitely increase the scope of a business.
Article published in EMV and Smart Payment Cards :