Accepting Chip and PIN card payments could help you…

Paying with chip and PIN

Tues Aug 14 2018


Did you know that 10 million people in the UK actively avoid restaurants, shops, cafes and bars that don’t accept card payments[1]? That’s one big reason to look into and understand the potential benefits of chip and PIN to your business.

Here, we’ll cover:

·         How accepting Chip and PIN card payments can help your business

·         The benefits of using Chip and PIN card readers with an ePOS system

·         Costs of accepting Chip and PIN payments

·         How to choose a Chip and PIN card reader and how they work

·         ‘Card Not Present’ transactions explained

·         Why Chip and PIN was introduced


The pros to accepting Chip and PIN payments

Fewer people carry cash

In 2016, 40% of all UK payments were cash. And by 2026, it’s expected to drop to just 21%[2]. So, with fewer people carrying cash than ever before, it makes sense to offer customers the option to pay with their debit or credit card, or make a digital wallet payment.

Cash can pose security risks

Many business owners would prefer not to hold cash on site, whether that’s at a permanent location or at a pop-up, festival or market. And that’s simply because it can be cheaper, easier and safer not to.

Cheaper because banking cash can be expensive compared to the merchant service fees associated with taking card payments.

Easier because when everything’s done electronically, you don’t need to spend time cashing up and depositing takings in the bank.

Safer because money is automatically transferred from your customer’s bank account to yours, with no need to keep large amounts of cash under lock and key.

Faster-moving queues for customers

Cash can be slow to find and count out for the customer, and slow to check, put in the till and issue change for the merchant. Chip and PIN and contactless card payments simply require a tap or a PIN entry, which is much faster. In fact, Barclaycard research shows that contactless transactions are 15 seconds faster than cash[3].

With customers able to pay faster, merchants just need to focus on being able to match that speed when it comes to delivering their products to make for faster-moving queues.


Benefits of using Chip and PIN readers with ePOS systems

A Chip and PIN card reader is a key component to any ePOS system. By picking the right Chip and PIN machine – for example a portable card reader or a card reader with a separate PIN pad, you could make a real difference to your customer experience and to your bottom line.  

By accepting Chip and PIN and contactless payments using a card reader, and linking this up to an ePOS system that also integrates your accounting and marketing software, you can combine different areas of your business to give yourself a single view of your customer and finances.

Find out more about what an ePOS system is and how one could work for your business.


Costs of accepting Chip and PIN payments

How much Chip and PIN payments cost depends on a few different things, including how many face-to-face (F2F) and/or eCommerce transactions you take each month and the value of card payments that you take each month. You’ll need to account for the Chip and PIN card reader rental cost, the type of cards you’ll accept (for example corporate credit cards, personal debit cards etc.) and what percentage of your income is generated from card rather than cash payments.

Read all about merchant service fees, including how much it costs to take Chip and PIN debit and credit card payments.


Choosing the right Chip and PIN card reader

It’s really important to think about what your business looks like now, but also consider how it will look in the future. There are a range of Chip and PIN card readers available, from the very basic to the more advanced. One thing to note is that while one card reader might be cheaper to buy up front, the transaction fees for debit and credit cards might be higher than they are with a mid-range card reader.

This article on merchant service fees breaks down how much taking card payments might cost you, so you can consider the whole package, not just the cost of buying or renting a card reader.


‘Card Not Present’ transactions explained

A card not present (CNP) transaction is where a purchase is made and the cardholder isn't there, in person, at the point-of-sale. A Barclaycard Chip and PIN card reader allows you to take card payments from customers over the phone, simply by entering their card details into the machine as if the customer was present.

It’s important to remember that you can’t carry out the usual fraud checks if the card isn’t in front of you. Here’s our guide to preventing chargebacks, which can happen if a customer disputes making a payment to you. 


Why Chip and PIN was introduced

Chip and PIN was introduced in 2006 as one way to try to tackle combat fraud on lost and stolen and counterfeit cards. Since then, retailers have been able to use Chip and PIN and contactless card readers, in conjunction with ePOS systems, to serve customers wherever they are in the restaurant or store.

See the Barclaycard range of point of sale solutions to see if Chip and PIN could help your business. 

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