If you want your business to succeed in the long-term – and let’s face it, who doesn’t? – you’ll need a Chip and PIN card machine (sometimes known as a PDQ card machine) to take payments from customers.
The popularity of card payments has boomed in recent years and cards have now overtaken cash as the most popular payment method across the UK. In 2017, 13.2 billion debit card payments were made in the UK (up 14% year on year), compared to 13.1 billion cash payments (down 15% year on year).
Chip and PIN technology is older than you probably realise – it was first invented in 1984. But it wasn’t until 2006 that chip and PIN machines were first introduced in a big way in the UK. They replaced the old-style card payment processing machines, which relied on the combination of a magnetic strip and the owner’s signature.
How does a Chip and PIN machine work?
All credit and debit card data is now stored on the card’s Chip (microchip). At the point of payment, the customer inserts their card into the Chip and PIN machine. The machine then reads the card’s data and attaches the payment amount to that particular card.
The customer, meanwhile, keys a four-digit PIN into the machine. This effectively acts as their electronic signature, replacing the old – and much easier to forge – pen-and-paper-based signature.
Once the PIN has been confirmed as correct, the payment is processed. Encrypted data is then sent from your machine to the relevant bank. Once the customer’s bank has confirmed the card details are correct, the payment receives final authorisation. It normally arrives in the business’s bank account no later than five working days later – and often much sooner.
What are the benefits of Chip and PIN payments?
Chip and PIN machines have five main benefits to both the businesses operating them and the customers using them.
- They make business easy. Instead of keeping old paper duplicates of customer signatures, all your customers’ payments are now processed quickly and simply through the machine.
- They don’t make mistakes. With a Chip and PIN machine, there is zero chance of giving a customer too much change. Unfortunately, that’s not the case with traditional cash payments.
- They’re more secure. PINs are much more difficult to use fraudulently than signatures, because only the card holder knows them. Nobody can see them on other documents and create a passable forgery.
- They’re quick. Chip and PIN machines are much quicker than previous ways of processing card payments, so they significantly improve customer waiting times – and, as a result, customer satisfaction.
- They grow your business. Without a Chip and PIN machine, your business is only able to take cash payments. But what happens when a buyer arrives expecting to pay by card? With a Chip and PIN machine, you don’t have to turn anybody away.
It’s clear that Chip and PIN card machines are now a crucial part of any business that deals directly with customers. Shops, cafes, restaurants, pubs and many others rely on them to take payments every second of the day. Could they boost your business too?
To find out more about our card machines for businesses, visit our Card Machines section.
