As a merchant, the most obvious benefit of being able to accept credit cards with chips is that you lose fewer sales as consumers switch over, but there are indirect benefits, too. Readers like SumUp are small enough to fit into your back pocket and as mobile as the smartphone used to help process payments. This means waitrons can carry their own readers, delivery people can process cards at clients’ doors, and on-site traders can control as many points of sale as they choose. The result is faster, superior service at a cheaper price.
Your clients deserve only the safest, quickest payment methods, so only state of the art technology will do. Your point of sale system affects your bottom line in several ways, from limiting your expenses to raising your revenue. Don't let this critical part of your business fall between the cracks.
The Benefits of EMV Chips
EMV chips come with significant benefits, not least of which is the size, economy, and portability of the latest machines. If you want to enhance your point of sale and cash ups, EMV readers will push you into a new era of ease and automation. Visa and MasterCard predicted that all U.S. retailers would be EMV compliant by the end of 2015. The reality is not quite as clear-cut. Seventy percent of consumers had EMV cards in April 2016, yet nationwide, only 20% of transactions leveraged the security of this technology. Effectively, consumers are rearing to move ahead, but merchants are lagging behind.
Chip technology has been a contentious issue in the United States, largely on the back of misunderstandings about its benefits and features. EMV card processing is no longer as sluggish as many merchants believe. In fact, today’s machines can process a payment within seconds. Chips have even had a success rate of almost 100% at reducing credit card fraud, and now, with card readers as light and economical as SumUp, they can change the way retailers do business.
How It Works
EMV stands for Europay, Mastercard, and Visa, the three most popular chip cards. Client data is kept on a computer chip that will soon replace magnetic strip technology entirely. In the past, hackers could gain access to credit card information all too easily, but chip technology is quickly eradicating this form of theft.
A standard credit card machine is expensive, packing fee upon fee without offering any significant security benefits. Chip processing time is steadily being cut, too. In September 2016, the general speed of an EMV reader was already at 4.2 seconds.
The Liability Shift
Retailers are falling behind with their chip card payments at enormous risk. The U.S. liability shift is already in full swing, effectively ending the budget-friendliness of magnetic strip payments. With responsibility for fraud chargebacks having shifted onto retailers’ shoulders should they not have an EMV reader, your lack of chip technology could cost you dearly.
Maestro, Visa, MasterCard, and American Express have already finished the general retailing shift. In October 2017, the final stage will be completed when credit card companies shift liability at pay-at-pump gas stations. Nine out of 10 U.S. consumers say they’ve tried to pay a merchant who wasn’t EMV compliant in the last six months. The ability to accept credit cards payments that are EMV-compliant is essentially an insurance policy against fraud and an impressively economical one at that: A contactless SumUp terminal comes with no cancellation or flat fees at a meagre price of 2.7% of each transaction. No intelligent insurer would sell a policy at such a rock bottom rate, and yet EMV “insurance” is available to every merchant in the country at precisely that price.
Why Chip Technology?
EMV credit card payment systems have been introduced specifically to prevent criminals from creating clone cards, but they also protect consumers from identity theft. Not all readers that accept credit cards are created equal, though: some send unencrypted data over a network, which exposes the card to theft. This is why SumUp encrypts all data that’s put through the terminal.
EMV for Advanced Users
SDK and API integration means your SumUp terminal can leverage merchant account resources in a customized way, too. API stands for “application program interface”, which lets you decide how your software interacts with other programs and apps. SDK stands for “software development kit”. This gives you the power to create your own applications to interact with your software, hardware, and operating system.
Checkouts can be accessed online and via mobile, which means your point of sale is as ever-present as the internet is. Server communication with SumUp is possible, so if you have the expertize to create your own integrated checkout form, the option is available to you. If you prefer to manage it simply, a form is provided to use as-is or to customize. Don’t let SDK and API-integration intimidate you — SumUp will accept credit cards as soon as it’s connected to a device, no complicated coding or handlers needed. API and SDK are merely provided to serve merchants who prefer to take the reigns of their point of sale systems.
How it Works
Implementing EMV couldn’t be easier. The card is “dipped” rather than swiped. The information on the chip is validated as legitimate while you're accepting your credit card payments, and, within a few seconds, the payment is processed. The money is then put into your account within the next 24 hours. Your cash ups are handled by the native application, and you can accept credit cards on iPhone and Android. The reader uses Bluetooth technology to connect to a mobile device carried by your employees and uses the phone or tablet’s keyboard when needed.
Magnetic strip technology is antiquated. It was introduced to the market in the disco era, so it’s not surprising that data breaches are happening as a result. Trump Hotel is the most recent example, with a massive loss of consumer information in over six states late in 2015. Some firms have been hit twice in the same year, while others have fallen victim to a different kind of crime. Hackers gained access to Target and Home Depot systems through magnetic strip cards, leaving viruses on their cash registers. U.S. banks have changed their card payment systems for excellent reason: identity theft and credit card fraud are among the most serious cybercrime challenges facing America today. The solution is an easy one: accept credit cards with chips instead of using their magnetic strips.
When you take credit card payments, your machine gathers all the data your accountant needs to document your sales and stock movements. SumUp’s dashboard lets you export your sales data to an Excel file daily, weekly, or monthly. Receipts can also be emailed or attached to a compatible printer, but it’s the Excel export function that will give your business incredible power. Because Microsoft Office integrates with an array of free analytics tools, chip technology gives you tabulated data that your marketing and accounting departments once paid a fortune for.
Your bookkeeping can now be finished in a quarter of the time, and your clients’ details are delivered to your desktop. Marketing data has never been easier to access. You can assess the buying habits of your clients, the quality of your leads, and how high your customer retention rates are. Adjust and hone your approach using your analytics as a guide, and your profits will rise. Accepting EMV credit card payments is your one-stop ticket to escalating revenue.
When you choose how you’ll accept credit cards payments, you’re not making a basic one-off decision about a product. The business who takes care of your chip transactions will be an important partner for years to come. It’s critical to choose a brand that regularly updates its applications and hardware to suit evolving advancements and risks. Find a reader that has already proven its mettle in accepting credit card payments offshore, and look for outstanding merchant services ratings. Uptime should be as close to constant as possible, and support must, of course, be easily accesible.
The way you accept credit cards payments must support your company’s growth. If you’re a small business, a reader designed for large-scale corporations that can afford extreme fees won’t serve you. If you’re a new, growing business, however, your reader must support you for at least the next five years. It must handle your stock control competently today and years from now. The only rational way to cope with this degree of scalability is by partnering with a brand that charges a percentage of your transactions without flat fees.
Your Business, Your Way
It’s tempting to get stuck in stasis when it comes to your business model if your point of sale is limited to your company premises. SumUp invites you to think outside the box. Now that your card payments are fully mobile, think about how you can leverage your new freedom. Will you add a mobile or e-commerce branch to your site? Will you franchise it or hire remote workers? The only limit is your imagination. Think big, and SumUp will grow to suit your ambitions.