subject: The Acceptance of Credit Cards [print this page] The Acceptance of Credit Cards The Acceptance of Credit Cards
A good number of SMEs (Small and Medium Enterprises) will appreciate now that there is a huge demand for debit card terminals, and due to the fact Chip and PIN technology appeared retailers without the appropriate card terminals have lost out on fundamental business. The debit / credit card is going to change into the payment choice of the population very fast and it's going on already.
What precisely has caused this?
This is more or less due to its convenience and efficiency, but you can also find other factors having an influence on the expansion of credit / debit card payment processing currently. Not least among these things is of course the abolition of the cheque guarantee card and the pending abolition of the personal cheque. These points have forced people that would typically pay by cheque into looking for other options, and without worrying about the ready supply of cash, a credit card works perfectly as it is easier than a cheque and the money is transferred from your bank account directly to the merchant in a lot less time.
Security is yet another attribute that attracts customers to using debit cards. It's a great deal easier and safer to carry a card and pay for goods and services as opposed to risk carrying significant amounts of cash that may well get stolen and not replaced. You might say that the same thing may possibly happen with a credit / debit card, however the credit card has additional measures set up to prevent its fraudulent use. Also, should your debit card be thieved and somehow used fraudulently, the banks possess a system in place to refund the credit card holder for monies lost.
Lower fraud chance
Should you take your credit card out with you and pay for goods and services in card terminals then all you require is your PIN number. Chip and PIN terminals can offer the maximum security because the customer can't use the card unless they know the four digit PIN number; this is of course the same at cash devices. Web payments are quite different, but of course you still need to know the address of the card owner, their full name and any security passwords that may exist due to the security feature Verified by Visa. This feature on Visa debit cards has cut down online web payment fraud a lot.
Think about contactless technology?
What exactly happens seeing that you have a card which can be capable of going from shop to store spending up to ?10 on services and goods that doesn't require a PIN number? There are issues here only if you don't realise you've lost your credit / debit card or had it stolen. If this is the case then simply anyone may get hold of your card and go from store to retailer buying things. The sole deterrent to fraud with contactless technology at present is that occasionally a retailer may be required to do a full transaction with the Chip and PIN device in order to verify the card users identification etc.
Summary
No matter what, whether it's with contactless debit cards or standard credit cards to use in Chip and PIN terminals, the retail world, along with debit and credit card processing are moving towards a future in which the use of plastic payments is the normal thing to do.
