The usage of cash for purchasing goods has been seen at a downfall over the past decade. To keep such an awkward amount of cash in your pocket while going to make a deal or purchase a particular item doesn’t seem much feasible. It can be noted that in the USA cash payment methods have decreased over time, and the new electronic payment methods are on the rise.
The main problem arises for businessmen involved in small or medium enterprises, for they generally accept in-hand payments. Plentiful businessmen prefer cash payment and deny card/electronic payments as it helps them save money on transaction charges. Many retailers and service providers also fear a fraudulent effort that might be made by the customer if they were to start accepting card payments.
This very fear of deception has made facilitating card readers as a method of payment, a questionable step for retailers and service providers. But according to reports, it is advised that businessmen should accept card payments or watch their customers leave. This very threat that an enterprise might lose consumers if it fails to enable a particular payment method should be a wakeup call for all those who own a small or medium-sized business.
While it is true that it will be a bit of a loss for small or medium sized business owners, to accept card payments and pay the transaction fee to the credit card companies. But it is still seen as a better alternative than losing customers. Small business owners should consider this step as a form of investment for the blooming of their business, it might be heavy on the pocket at first but will get you better results over time.
Companies likehave a low transaction rate (as low as 2.65% per transaction) and are of great help to small and medium-sized business owners, as the company is an EMV card reader technology provider. SumUp is as of right now Europe’s #1 fastest growing company, and also a renowned leader of the European MOPS market.
It has come up with the technology to help small /medium sized business owner’s process card payments with ease. SumUp now has an office located in Boulder Colorado and has now officially branched out into the market of the United States of America. With a successful enterprise set up in Europe and South America (especially Brazil), the company aims to make their presence felt in America and manifest their vision of becoming the world’s first greatest card acceptance brand.
While it may seem a bit complex, but there are only 3 known card readers that you need to familiarize yourself with. Mentioned below is a brief of each type of card reader and how it is used.
Swipe Card Reader: This is one of the basic types of a card reader, which requires the person to swipe their card alongside the magnetic strip present on their card. This type is very simple yet it can easily be used and replicated by fraudsters.
It is only after the physical swiping of the card will the money be deducted from the individuals’ bank account and be transferred to the merchant’s account. This type of card reader may soon be out of fashion due to newly designed card readers, but it still facilitates a majority of payments made till dates.
EMV card reader:
This card reader has seen an uprising in its usage over the past few years, as it guarantees easy and safe transactions. The company SumUp has come up with suchthat work with a Bluetooth based interface. EMV stands for “Europay MasterCard Visa”, and has emerged as a profound method of payment all around the globe.
EMV technology works on the principle of chips, the card will have an encrypted chip planted on it which will contain the required banking data. This data will be shared with the card reader when the user plans to make a purchase/payment.
An EMV card reader is a fraudulent free method, as without the presence of the card you cannot make a payment. Fraud for card users is only possible in cases where the card is not present like an online transaction or giving your card details over the phone.
Is an advanced type of payment method, NFC stands for “Near Field Communication”. It is basically a payment method which requires less-contact because it works on the principle of RFID (Radio Frequency Identification). NFC equipped cards, Smartphone’s and other smart devices are able to make payments via NFC readers or other payment processing devices.
How does it work? It is pretty simple, NFC based cardholders can pay a significant amount to a merchant by simply ‘Tapping’ their chip embedded card on the NFC card reader and the amount will have been transferred from the customer’s account to the merchant’s account.
NFC has become an emerging payment method as it is fast and easy, it is also becoming a trend among smartphone users. All you need to do is download the required app select your card of choice and put in its details, after which you can make payments through any NFC equipped device. This payment method is equally secure as that of EMV technology.
The Liability Shift-
A liability shift was implemented in the month of October 2015. Which mentioned that the in the case of a fraudulent scenario the liability would shift to the party which had not yet adopted chip technology.
To help you understand the concept better we bring forward 3 scenarios:
1st Scenario: A counterfeit payment was made by a magnetic strip card on a swiping machine. In such cases, the customer is held liable for fraud.
2nd Scenario: A counterfeit payment is made using a chip embedded card on a traditional magnetic stripe only terminal. In such a case the liability shifts to the merchant as the cardholder had spent on chip technology for a safer transaction while the merchant had not.
3rd Scenario: A counterfeit payment is made using a chip embedded card on a chip-based terminal. In such a case the merchant is off the hook, while the liability will shift to the customer.
These 3 scenario’s show us that investing in chip technology is only beneficial for small and medium-size businesses. Because investing in chip technology by both parties (buyers & sellers), will lead to an overall decrease of in-store counterfeit fraud.
SumUp is one such company which will help you get your hands on chip-based technology, which can be used for multiple terminals. SumUp provides EMV card reader technology that is chip-based, even provides light and small card readers for those mobile businessmen that are always on their feet.