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3 Advantages of Using Credit Card Chip Readers

Not only do consumers expect retailers to have credit card chip readers, but these transactions are more secure and save merchants money.
January 09, 2018 2 minute read

3 Advantages of Using Credit Card Chip Readers
By now you’ve probably heard about the EMV chip cards many consumers throughout the United States and other parts of the world are using. You likely even have one of your own. While some business owners may not believe it’s necessary to utilize the credit card readers that process these chips (as it is not required by law), doing so does hold several significant advantages.

Here are three reasons why utilizing a credit card chip reader is a smart decision for retailers:

1. Many consumers expect it.

According to September 2017 statistics shared by Visa, there’s been a significant increase—542%—in Visa EMV cards within the United States since the liability shift several years ago. In fact, there are approximately 462 million chip cards that have been issued by the global payments technology company alone. This doesn’t count chip-activated cards offered by other companies, such as Mastercard. With so many chip cards out there, consumers will naturally be utilizing them more frequently when making in-store purchases, and would likely decide against simply swiping their cards, given the choice.

Furthermore, upwards of 2.5 million “merchant locations are now accepting chip cards,” Visa proclaims. As a result, businesses that do not fall into this category could be hurting their rapport with customers.

2. Businesses can better secure transactions.

Credit card chip readers have been shown to protect consumer data during transactions more effectively than those involving traditional magnetic striped cards. A chip “performs cryptographic processing for validating the integrity of the card number and certain static and dynamic data used in the transaction,” explains a 2012 whitepaper by global payment technology solutions company First Data.

Titled EMV and Encryption + Tokenization: A Layered Approach to Security, the whitepaper discusses how this “cryptographic processing” helps provide “a strong form of card authentication, validating the legitimacy of the payment type being used.” This can help thwart attempts by hackers and thieves to steal data and commit fraud, specifically when it comes to purchases taking place at brick-and-mortar store locations.

3. It can help save retailers money in the long run.

The October 2015 liability shift officially made businesses responsible for in-store counterfeit card fraud cases involving EMV chip cards and non-EMV-compliant retailers. Repeated abuses could cost businesses a lot of money. Consequently, switching to EMV and integrating credit card chip readers sooner rather than later is a cost-effective move.

“For merchants who have completed the chip upgrade, counterfeit fraud dollars dropped 66% in June 2017 compared to June 2015,” according to the aforementioned statistics shared by Visa.


Accepting EMV cards isn’t the only capability a credit card reader should have. Learn about others HERE.

Topics: MPX Benefits

For additional information please call MerchantPro Express at 888-333-1374 or email info@merchantproexpress.com.

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Is Your Business EMV-Compliant?
Is Your Business EMV-Compliant?