Chip and PIN Devices - Fraud Prevention for the Debit Card

Chip and PIN Devices - Fraud Prevention for the Debit Card

We're going to talk about the ways in which Chip and PIN machines at point of sale might be far more efficient at combating fraud in your place of business. When you are contemplating installing Chip and PIN devices in your company then you will will need to know just how safe they really are.

Information on how they work

At the point of sale, instead of the customer handing you cash, or you taking their debit or credit card from them and swiping it in a debit card terminal on your cash till, you do not cope with the card at all. This alone helps to make the customer feel more secure, even though the risk from you the retailer is minimal; its important to make the customer feel happy about their selected method of payment.

Customers put their PIN number (of four digits that only they can know) into the Chip and PIN terminal when they enter their card and then press the enter button to pay for their items. The only way fraud can occur here is if an individual identifies the PIN number being entered into the debit card machine. This is very unlikely, and even if they did get the number, they would then need the card. So Chip and PIN machines are pretty flawless when it involves protecting against fraud, simply because the Chip is absolutely no good without the PIN, and it's equally as worthless the other way around too.

Why don't you consider debit card transactions over the phone and internet?

Well when it involves debit card payments over the telephone or web payments there is usually simply no Chip and PIN devices of course, instead there is what is commonly referred to as a virtual card machine.

Your credit or debit card number is given, in conjunction with the expiry date and the number on the signature strip at the back; in fact every little thing a fraudster needs to buy items over the phone or internet. Having said that, there are other systems in place to combat this. Nowadays merchants can not just take the numbers and leave it at that, they are obligated to take numeric information about the cardholder's address. This helps prevent a thief or fraudster from using the card considering that they are very unlikely to know the card owner's address.

Beneficial motives to accept debit cards

As a retailer or online merchant these points are beneficial reasons to take debit cards and install Chip and PIN technology where you possibly can. If you can lower the amount of fraud risk in an exchange then the less likely you are to be affected a chargeback as a result of a fraudulent transaction. Always make sure you double check every little thing whether you accept cards, cash or cheques. The Chip and PIN system is only one way to combat fraud; these crooks will try anything to be able to get what they want.

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