Payments High-Level

Card present – defined

Card present transactions are those where you swipe the card through a magnetic card reader, wave the card in front of a contactless payment terminal, or insert the card into a chip-reading device to request the transaction authorization.

Best practices include

  • Check to see if the card has been altered in any way
  • Print a copy or transmit an electronic receipt to the cardholder
  • Compare the name, number and signature on the transaction receipt if a signature is required for the transaction
  • Adhere to your merchant store procedures and respond accordingly if you suspect fraud

A word about fraud and the chip on the card

The liability of fraudulent use of a credit or debit card has shifted from the card issuer to the merchant. This is because fraud detecting technology is now available to merchants. An example of this is the EMV Chip and PIN technology designed to detect such fraud. EMV is a global standard for chip cards and the EMV chip authenticates credit and debit card transactions at ATMs and POS terminals. Using a chip-reading device before a magnetic stripe swipe whenever possible may limit possible exposure or liability for counterfeit or lost/stolen card fraud. Your exposure increases if your terminals are not EMV chip enabled. Generally speaking, the party supporting the most secure technology for each fraud type will prevail in a chargeback. If there is a technology tie, the fraud liability generally is expected to remain with the issuer. So, from a liability perspective- EMV enabled terminals makes sense for you, the merchant.

Are EMV cards working? Must be! In most countries where the EMV Chip and PIN technology has been introduced, there have been increases in Card Not Present (CNP) fraud. Fraudsters always move toward the easier targets.

Payments Detailed

Why do you need a payments strategy?

Payments are fast-becoming an opportunity to better serve your customers. Ensure you’re not paying too much to bring added convenience to them.

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