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3 Reasons Small Merchants Should Switch To Chip & PIN

EMV Chip & PIN credit cards are already the standard in most parts of the world. But these chip-enabled cards have only recently come to the U.S. And the adoption rate has been relatively slow.


Many American merchants delay updating their payment technology because they don't want to buy newer EMV-ready credit card readers. This is especially true of smaller merchants who have a hard time justifying the added expense.

Perhaps you've put off updating your payment processing for similar reasons.

But there are several important benefits to updating legacy credit card terminals with EMV technology. Below are the top three reasons why every small merchant should adopt Chip & PIN payment options.

1. Greater Security (and More Sales)

Chip & PIN credit cards are far more secure than their magnetic counterparts. The embedded chips are very difficult to clone. And in order for a retail transaction to successfully go through:

  • The card (and chip) must be physically present at the register
  • The customer must enter in a personal identification number (PIN)

As a result of this greater security, retailers who adopt Chip & PIN plastic face fewer instances of credit card fraud. They also benefit from higher consumer confidence in their payment environment, which inevitably leads to more sales.

2. Limited Liability Exposure

In 2015, new liability rules will go into effect for all Stateside credit card transactions. Although these rules won't make Chip & PIN terminals mandatory, they’ll place severe penalties on merchants (and credit card issuers) who continue using older payment technologies.

If and when credit card fraud happens, whichever side of a transaction isn't EMV-compliant will have to cover any losses:

  • If you have an EMV terminal and your customer uses an older credit card, that customer's credit card issuer is responsible for fraudulent losses.
  • If you have an older credit card terminal and your customer uses a Chip & PIN card, you are responsible for any fraudulent losses.

Credit card issuers have already started sending out EMV plastic to their customers. By the end of 2014, roughly 25 percent of all credit and debit cards were EMV-ready. You should consider updating your payment infrastructure now to limit your liability exposure once the new rules go into effect in October.

3. “Low-Hanging Fruit” Protection

EMV transactions offer greater protection. And because of the upcoming liability rules, merchants are increasingly switching over.

But not everyone has made the transition yet (especially smaller merchants).

This is a huge mistake.

As more retailers begin accepting Chip & PIN credit cards, the ones that don't become easier and more attractive targets for thieves. Given a choice between hacking into an EMV terminal or a legacy terminal, most criminals will choose the latter.

By delaying your update to Chip & PIN technology, your store becomes "low-hanging fruit" for anyone who wants to steal credit card information. It's analogous to being the last person on the block to install locks or a burglar alarm.

Let Us Help You Switch to Chip & PIN Credit Card Processing

Less fraud, fewer losses and more sales. These are just three of the top reasons why you should update your payment environment to accept Chip & PIN credit cards.

Not sure where to start?

At BluePay, getting set up is easy. Visit Secure EMV Credit Card Processing and we’ll take care of the rest.

Topics: EMV, PCI Compliance and Fraud Prevention

Welcome to the BluePay Blog!

Whether you're a small business, an enterprise corporation, a financial institution, or a software partner, we have created a series of blog posts to help you and your customers, learn more about the complex nature of payments. Take a look to learn how payments can help to simplify your business operation, and may even help to grow your revenue.

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