As a business owner, you may be wondering which type of credit card processing is best for your business: EMV or traditional. EMV (Europay, Mastercard, and Visa) credit card processing is a newer technology that offers more security for transactions. On the other hand, traditional credit card processing has been used for decades and is familiar to many customers. So which is better for your business? Let’s take a closer look.
First, let’s talk about traditional credit card processing. With this type of processing, customers swipe their credit cards through a machine that reads the magnetic stripe on the back of the card. The machine then communicates with the customer’s bank to ensure that the funds are available for the transaction. Once the transaction is approved, the funds are transferred from the customer’s account to the merchant’s account.
One of the advantages of traditional credit card processing is that it’s a well-established system that customers are familiar with. They know how to swipe their cards and can complete transactions quickly and easily. Additionally, it is usually less expensive than EMV processing, as there are no additional fees for using an EMV chip reader.
However, this type of processing has some significant drawbacks. One of the most significant issues is security. The magnetic stripe on the back of the card contains all of the customer’s information, including their name, credit card number, and expiration date. This information can be easily stolen by hackers, who can use it to make unauthorized purchases.
EMV credit card processing, on the other hand, is a newer technology that is designed to be more secure. With this type of processing, customers use a credit card with a chip embedded in it. The chip generates a unique code for each transaction, making it much more difficult for hackers to steal customer information.
One of its main advantages is that it’s much more secure than traditional processing. Customers are much less likely to have their information stolen, which can help protect your business from liability issues. Additionally, many customers appreciate the added security and are more likely to use businesses that offer EMV processing.
However, there are some drawbacks to using EMV credit card processing. One of the main issues is cost. EMV chip readers can be expensive, and many small businesses may not be able to afford them. Additionally, it can be slower than traditional processing, as the chip reader must communicate with the customer’s bank to generate the unique code for each transaction.
In conclusion, both traditional and EMV credit card processing have their advantages and disadvantages. Ultimately, the best option for your business will depend on your specific needs and the needs of your customers. If you’re concerned about security and want to offer your customers the latest technology, EMV credit card processing may be the way to go. However, if you’re a small business owner who doesn’t process a lot of credit card transactions, traditional processing may be the more cost-effective option. Regardless of which option you choose, it’s important to keep security in mind and take steps to protect your customers’ information. By doing so, you can help ensure that your customers feel confident and secure when doing business with your company.