Merchant Chip Benefits
The Benefits of Chip for Merchants
The benefits of chip for merchants include the following:
- Continued consumer confidence in the payment system
- Consistent payment experience for credit and debit. Most transactions will be validated with a PIN
- PIN is a stronger method of authentication than signature
- Credit transactions will be validated by the issuer after the consumer uses their PIN, not by merchants checking the signature on the back of the card
- Potential to improve POS checkout speed
- Potential to reduce credit card disputes, charge backs, Requests for Information (RFIs) and associated costs
- Potential to reduce paper supplies
- A single chip can potentially support multiple applications including non-payment services such as loyalty programs
What Does Chip Migration Mean for Mail Order, Telephone Order (MOTO) and Online Merchants?
The upgrade to chip technology provides increased security for a ‘card present’ transaction. MOTO and online merchants will continue to transact as they do today. MasterCard, Visa and American Express, offer best practice information for MOTO merchants that can be found at :
Within Canada, the payment networks have been proactive in educating consumers and providing additional security measures to protect against online fraud. MasterCard’s SecureCode
and Visa’s Verified by Visa
allow cardholders to authenticate themselves with a password when shopping online at participating merchants.