In 2015, the United States introduced new liability rules designed to make EMVs the credit card standard for in-store retail purchases. EMV cards come with embedded chips that must be inserted into the card terminal, meaning they offer much greater fraud protection than traditional magstripe cards.
Despite these additional security benefits, making the transition to EMVs hasn't been easy — for retailers or shoppers.
- For merchants, adopting the newer payment standard involves replacing legacy terminals with ones that can read the embedded security chips. Nationwide, these upgrades are costing U.S. retailers billions of dollars. Merchants also must spend additional time and money on training employees how to properly process EMV transactions.
- For consumers, no major changes are required. Most card-issuing banks simply began sending EMVs to their customers for immediate use.
However, that doesn't mean shoppers are getting off easy.
Although chip card are very effective at preventing fraud, they take much longer to process during checkout. Whereas a magstripe credit card transaction might take two or three seconds, average EMV payment processing times approach 20 seconds.
However, Visa believes it has developed a way to reduce that waiting time — by more than 90 percent.
EMV Credit Card Processing in Less Than Two Seconds?
With a standard EMV reader, the credit card must remain inside the terminal until:
- A connection to the server is established
- The transaction is authorized
As previously mentioned, this can take up to 20 seconds — sometimes longer. Visa's “Quick Chip” is designed to simplify and speed the process.
EMV terminals that use Quick Chip technology can send payment data to the server and receive a response when the card is no longer in the reader. In fact, a customer can initiate a purchase and put the credit card back in his or her wallet before the cashier is finished scanning all items.
This is great news for shoppers, who should experience shorter wait times — both in line and during checkout.
Quick Chip technology is also welcome news for merchants, as stores should be able to generate more sales per unit of time with quicker transactions.
When Will Quick Chip EMV POS Systems Become Mainstream?
If you're interested in reducing EMV payment processing times, you probably won't have to wait long, given that Quick Chip is a software update — not a hardware upgrade. Plus, it’s available at no cost to payment processors, terminal manufacturers and acquiring banks within Visa’s network.
The other major credit cards are working on Quick Chip offshoots as well. There is tremendous pressure to make sure this payment option is readily available before the next holiday shopping season.
Once the software is installed on your EMV terminal, there are no additional changes required:
- Banks don’t have to provide any updated cards.
- Shoppers can still dip and pay as usual.
- Employees don’t need extra training.
This EMV payment option works like other chip-enabled terminals — only it’s 90 percent faster.
To learn more about reducing EMV processing delays, contact our payment security team today.