Credit Card Security: Chipped Cards vs. Contactless Payments


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For years, credit cards were designed with a magnetic strip that was “swiped” at the time of transaction. While this payment method was easy and simple, security issues quickly became an issue because these cards are simple to clone. Scammers took advantage of the situation and stole credit card information so they could create false cards.

Technology Advancements for Security

In recent years, major credit card companies have switched the form of payment to get ahead of the rampant fraud in the industry. The latest technology solutions include both EMV credit cards and contactless payments. As a business owner, it is essential you have options to accept these payments to serve the needs of your customers.

There’s no question security is improved with both contactless payments and EMV credit card solutions. Accepting these forms of payments means that you can reduce the risk of chargebacks and fraud for your business.

Here is an overview of how both EMV and contactless payments are more secure than magnetic swipe transactions:

  • EMV Chipped Cards: These cards are designed with a security chip that is embedded and read in the payment processing terminal. The chip is difficult to clone, which means the original card needs to be present for the payment to be processed in the store.
  • Contactless Payments: Near Field Communication (NFC) technology is used for contactless payment. This system utilizes a wireless connection between the customer’s phone or card and the payment terminal. The transaction will only go through if the cashier rings up the sale first, then the customer needs to place the card within 2 inches of the terminal. While the system is fairly secure, there is a risk that payment information could be stolen if a hacker got close enough to a person’s wallet.

Having a modern terminal that is up-to-date with the latest advances in technology is the most effective solution to ensure you are protecting your customers and your company. Keep in mind these security features only apply to in-person transactions. Other security protections need to be implemented for online shopping if you offer services through the internet.

At Veripay, our goal is to help you maintain the most secure, reliable payment processing system for your business. If you are interested in learning more about the services that are offered, then you are welcome to contact us at any time: 888-891-0811