UK Finance estimates that two billion transactions totalling £60.8 billion were made in May 2022 using debit cards issued in the UK. Chip and PIN machines were used for most of those transactions. It is safe to claim that virtually everyone in the UK frequently uses a Chip and PIN machine. It might be among the most recognisable and reliable payment options. But how to find the best chip and pin machine for business?
To choose a chip and pin machine that will suit your business you need to have a basic understanding of the device. You should be aware of the definition of a Chip and PIN machine, the several available types, and the operation of a Chip and PIN reader.
What exactly is a Chip and PIN device?
Chip and PIN devices are a type of card reader machine that is used to accept credit or debit card payments. They collect cardholders data from chips placed on a card and send encrypted data to your merchant account to proceed transaction. Before the funds can be deposited into the company’s merchant account, the customer’s bank must approve the information.
How does the Chip and PIN machine work?
The name, account number, and expiration date of the cardholder’s bank account are all stored on the EMV (Europay, Mastercard, and Visa) chip within a Chip and PIN card. An exchange of transaction-related data takes place when the card is plugged into a Chip and PIN terminal, adhering to a standard developed by Visa, MasterCard, and Europay. A special four-digit PIN, often known as a personal identification number, is required to confirm that the cardholder is the person making the transaction.
Once this is successfully input, the Chip and PIN card machine makes it possible for encrypted data to be exchanged between the card reader and the cardholder’s issuing bank, where payments are verified and authorised. Usually, it takes three to five working days for an authorised payment to arrive in your business bank account.
Different types of Chip and PIN machines
You’ll need a Chip and PIN machine to operate a profitable business in the UK and Europe, but which kind of Chip and PIN system is best for your industry? Chip and pin card reader devices primarily come in three different varieties. We will explore all of them in details in the following paragraphs.
Countertop Payment Chip and PIN Machines
A countertop payment chip and PIN machine is a stationary device that is connected to a power source and a dedicated phone line or internet connection, typically placed at a counter or checkout area. Often, countertop chips and PIN payment machines are used in establishments with fixed payment points or places with weak Wi-Fi.
Users can accept both contactless and card payments with these devices. Adopting a countertop machine will guarantee that you have all the resources necessary to accept payments from clients securely and effectively. Due to their direct connection to your phone or broadband line, countertop payment chip and PIN terminals are typically the fastest and least expensive of the card readers.
Additionally, they are connected to your primary power source, so you won’t need to worry about battery life or charging. The risk of downtime is reduced thanks to hard wiring, and reliability is unmatched.
Portable Chip and PIN Machine
More flexibility is offered by portable Chip and PIN Machine as they can be used to aspect payment within a range from a central point. They connect wirelessly to the central point while being battery powered. The best thing about this gadget is that you don’t have to plug it into an outlet.
There are many advantages to using portable Chip and PIN credit card readers. The portable credit card readers are primarily and realistically used for point-of-sale purchases. People around the world who want to boost their sales and earnings frequently use these tools. One of the truly remarkable inventions of our modern age is the portable credit card reader.
Mobile Chip and PIN Machine
Since mobile Chip and PIN readers connect to servers through cellular networks and are not site-specific, they offer the highest level of mobility. These gadgets are perfect for mobile enterprises including pubs, lodging facilities, food trucks, delivery services, and trade exhibitions.
Even though there are POS terminals that are specifically designed to be pocket-sized, a genuinely mobile card reader entails turning your current smartphone (or tablet) into a portable POS device. This mobility allows you to securely process card-based sales no matter where your business takes you. There are many situations where this might occur in a business, on the street, at trade shows, or during deliveries. In-app payments are another feature that some mobile credit card readers support, enabling your clients to conduct “online” purchases exactly like they would on a conventional e-commerce website.
The popularity of mobile Chip and PIN readers grew as retailers and customers realized the benefits of mobile payments. One of the most convenient ways to accept payments in person is through a mobile card reader. Hardware costs are minimal, and the setup is easy (especially if you already own a phone).
Benefits of using a Chip and PIN machines
By May 2022, there were 59 million active credit cards and 95 million active debit cards in the UK. It is apparent how common card payments have become when you consider only 68 million people live in the UK. But what are benefits of using a chip and pin machine for business.
Customers may easily pay with debit or with credit cards thanks to chip and PIN technology; with the inclusion of contactless payments, many machines also accept purchases through phone apps. Additionally, chip and pin machines significantly reduce card fraud from fake cards. Each payment is highly encrypted, and almost all transactions are completed without any problems.
It’s safer for you and your clients to handle less cash. It is much more difficult to steal a direct bank account transfer, and your customers will not be carrying large amounts of valuable paper with them. As a result of Chip and PIN security measures, thieves would have a harder time accessing victims’ money if their cards were stolen.
With chip and PIN technology, your customer only needs to check their phone to confirm that they have enough cash on hand or available credit on their card before tapping and making a purchase. It’s quicker and simpler. Additionally, it offers you more time to spend with the following customer, who will probably use your Chip and PIN machine to make their payment.