What’s the Difference Between Chip and Signature and Chip and PIN Transaction?

chip card transactions y2payments

It seems nearly every major credit card issuer has gone to chip-enabled cards, and for good reason. These cards have far more fraud-prevention features than others available today, and that not only protects the credit card companies that issue them but merchants as well. There are, however, two different kinds of cards available – those cards that are dubbed chip and signature cards and those called chip and PIN cards. What’s the difference between the two, and which is the best payment type for your business? Take a look.

Chip and Signature Cards

At the heart of the difference between these two kinds of cards is how customers buy merchandise. A chip and signature card means the customer inserts his or her card, then signs for the purchase. This should be a pretty familiar process, as it’s a bit like the older, magnetic cards. It’s fast, it’s convenient, and it’s a familiar process for many consumers. There is a drawback, though. Signatures can easily be forged in this system.

Chip and PIN Cards

With this type of card, a customer puts it in the chip reader, then keys in a PIN, personal identification number, to complete the transaction. This system is probably the safer of the two, and while customers are familiar with the swipe and sign, as debit cards have become more and more important across the United States to consumers, they’re more familiar than every with entering a PIN for purchase. Studies have shown that fraud losses plummet with the adoption of a chip and PIN system for all cards.

Do You Have a Choice?

Just because there are two kinds of cards available doesn’t mean you have a choice of which ones to accept. Most of today’s updated terminals read both chip and signature transactions and those that require a PIN, so you don’t have to worry about choosing between the two. In fact, few payment processors even require a different fee for one over the other. What you do need to know, now, is that there is a difference, and should an option pop up in the future, you may want to go with chip and PIN to protect your business.

Learn more about payment processing options for your business at Y2Payments.

Y2Payments and Customer Service Go Hand In Hand

y2payments processing customer service

The world of consumer products is a customer service oriented world. Actually, thanks to the internet and the fact that any information is instantly available, any business that deals with customers or clientele needs to have high quality customer service.

At Y2Payments, we understand how important it is to have the right customer service agent available when you need them. The world of commerce and sales doesn’t stop for anything, especially if you’re an online retailer. The Y2Payments difference is that we have a customer service associate here and ready to help you, 24 hours a day, 7 days a week.

One of the reasons we try to make sure that we’re available at any point in time is due to today’s retail climate. Customers want to be able to buy what they want, when they want it. The last thing you want to have to deal with is any sort of payment issues.

At Y2Payments we can help you immediately so that you don’t have to wait until the next day to get things solved. We’re even available on the weekend, which means your Monday will be a little less stressful as you’ve been able to take care of any payment issues over the weekend.

Friday evening you decide to look over the Conduit report and you discover something that doesn’t make sense? No problem. We’re here to help! Just give us a call at 888-693-1850. It does not matter the time of day, we’re available and ready to help you understand the report. If there are any problems, our agents are fully capable of taking care of them for you, or knowing what process needs to be followed to get everything fixed properly.

With Y2Payments, you don’t have to worry about being left in the dark or floundering with a payment issue. We pride ourselves on making sure that our customer service is top notch so that you can provide high quality customer service to your customers!

To learn more, contact us today.