By now, most of us have received a new credit card from our financial institution, which is embedded with a high-tech security device. We received these cards because the industry has made an important stride in increasing credit card security for consumers and businesses alike: Chip and PIN technology.
Chip and PIN technology is the next step forward in the ever-changing world of cybersecurity. When a consumer buys something with a Chip and PIN-enabled card, the card produces a one-time code that authorizes the transaction. That one-time code is unique each time there is a transaction. So, stealing the card information during that transaction is not valuable to hackers—that specific card information will be useless in the next transaction.
This new technology is much safer compared to the magnetic strips of old, but implementing the technology has proved itself difficult. As anyone with a chip-enabled card is likely aware, merchants have had trouble implementing the technology in their stores, including some of the largest retailers in the country. One of the most common cited problems with implementation is the cost associated with installing the new card readers. Also, and often most noticeable to customers, the chip and PIN system is not as fast as simply swiping a magnetic strip. The card readers can be finicky, costing both customers and retailers valuable time.
In order to reap the benefits of this new cybersecurity tactic, retailers and the credit card companies alike need to work towards fully executing the implementation of this new technology. Not only will consumers benefit from added security, but businesses will save time and money and avoid legal liability in their attempt to combat fraud.
If your business is struggling with chip and PIN transaction challenges, hang in there. Despite the hiccups of this new technology, protecting consumers’ information to the fullest extent will be worth it in the long run.