Chip and PIN machines

As the world of payments continues to evolve, the use of Chip and PIN machines and contactless payments is witnessing a significant increase. With the increasing preference for convenient and secure transactions, businesses across various industries recognize the importance of having chip and PIN machines in their stores and businesses, both for themselves and their customers.

According to recent statistics provided by UKFinance, contactless payments accounted for 62% of all credit card transactions and 75% of all debit card transactions in the UK. 

In this blog, we will examine the various types of chip-and-PIN machines and PIN technology available and delve into their pricing considerations. We will also explore the benefits they offer for your store and customers and provide guidance on selecting the optimal chip-and-pIN reader for your small business. 

Join us as we explore the world of Chip and PIN technology and help you make informed decisions about your payment processing needs.

Chip and PIN machine: What is it, and how does it work?

Chip and PIN (Personal Identity Number) machines, also known as EMV (Europay, Mastercard, and Visa) terminals, are secure devices for processing credit and debit cards, aking in-store transactions and card payments more straightforward and secure.

Chip and PIN cards store all the necessary information on a computer chip combined with a four-digit personal identification number (PIN). The PIN system has become an integral part of the shopping experience. Chip cryptography makes it difficult to counterfeit cards, reduces fraud and is received globally. As such, the chip stores critical financial data and transmits it when prompted to do so.

Chip and PIN machines work with the customers inserting their chip-enabled cards into the terminal, and entering their secure PIN, whereupon the machine verifies the card’s authenticity. It establishes a secure connection with the card issuer for transaction authorisation.

The Chip and PIN machine displays the result, and a receipt is printed once the transaction is approved. The transaction amount is then deducted from the customer’s account, if a debit card is used or added to their credit card bill instantly for credit card users.

Why is it called a Chip and PIN machine?

The term “Chip and PIN” refers to the two main components of the payment system: the chip embedded in the payment card and the Personal Identification Number (PIN) entered by the cardholder.

The chip, which stores encrypted data, enhances the security of transactions.

At the same time, the PIN provides an additional layer of verification to ensure that only the authorised cardholder can complete the transaction.

How to choose a Chip and PIN reader: Chip and PIN machine types

When you process card payments, PIN technology works with your payment processor to accept Visa and Mastercard payments, among others. However, there are different types of machines you can choose, depending on your business needs, and we outline how they operate and in what cases they are used in more detail below. 

Here is what types there are:

• Countertop payment machines: Countertop payment machines are stationary devices typically placed at a counter or checkout area. They are connected to a power source and a dedicated phone line or internet connection. Countertop payment machines are commonly used in stores with a fixed payment point or where the Wi-Fi signal is not particularly strong. They enable credit and debit card payments when the customer physically inserts their card into the machine, after which they are prompted to enter a PIN.

• Portable Chip and PIN machines: Portable Chip and PIN machine readers provide more flexibility as they can be carried around within a limited range. They are battery-powered and connect wirelessly to a base station or communication hub. This type of card machine is suitable for businesses that require mobility within their premises.

• Mobile Chip and PIN machines: Mobile Chip and PIN machine readers provide the highest level of mobility as they operate on cellular networks connected wirelessly and thus are not limited to a specific location. These Chip and PIN machines are ideal for businesses that operate on the go, such as bars, hospitality venues, food trucks, delivery services, pop-up retailers or trade shows. Through these machines, accepting card payments becomes much more streamlined and convenient.

Regardless of the different types of PIN readers, it’s beneficial to have choices when it comes to processing transactions and accepting payments made with credit or debit cards.

Benefits of Chip and PIN Machines for Customers and Businesses

Ready to process payments and accept credit and debit card payments? With a chip and PIN machine, you can now do it. Plus, there are a host of other advantages you and your customers can enjoy.

Some of these include:

• Enhanced security and fraud protection: Chip and PIN machines provide advanced security measures that help protect your business from fraudulent transactions. The chip technology encrypts sensitive card information, making it difficult for fraudsters to clone or counterfeit cards. Additionally, requiring customers to enter their PIN adds an extra layer of verification, ensuring that only authorised individuals can complete transactions.

• Streamlined operations and improved efficiency: Chip and PIN transactions are faster and more efficient compared to traditional payment methods, such as signature-based transactions. With the streamlined process of inserting the chip card and entering the PIN, you can serve customers more quickly, reducing waiting times and improving overall operational efficiency.

Another important and often surprising element is that these machines can also accept payments made through digital wallets such as Apple Pay and Android Pay. Using near field communication, contactless payments become more streamlined, faster and offer greater convenience while upholding strict security standards.

Chip and PIN machine cost: How much is a chip and PIN device?

There are many factors that influence the price of a Chip and PIN device, including the type of machine, features and capabilities, brand and supplier, as well as whether you choose to lease or purchase the device. It is essential to consider your business needs and carefully choose the most suitable device for you.

NFC technology: What is it?

NFC (Near Field Communication) is a wireless communication technology that enables devices, particularly smartphones and tablets, to exchange information with compatible NFC readers. This technology has gained significant importance as it has become an industry standard on Windows, Android and Apple devices, making NFC-enabled point-of-sale systems increasingly relevant.

NFC works on the principle of electromagnetic induction, allowing communication between an NFC-enabled device, such as a smartphone, and the NFC tag. NFC readers provide a seamless transition for businesses as smartphone payments become more prevalent.

NFC transactions benefit from enhanced security measures, including digital signatures and secure element chips, which safeguard devices against potential hardware and software-based attacks.

In 2022, more than two billion NFC-enabled devices were recorded worldwide – translating to more than 20% of the world’s population having access to NFC. As NFC becomes more accessible and customers prefer it as one of their payment options, there’s no better time to connect and integrate NFC devices into your business and reap its rewards.

myPOS Chip and PIN machines for small businesses

myPOS offers Chip and PIN machines specifically designed for small businesses.

myPOS devices provide:

• Secure and convenient payment solutions;
• Acceptance of various payment methods like Chip and PIN cards;
• Contactless payments;
• Mobile wallets.

Our user-friendly and portable card machines enable businesses to accept card payments on the go.

Along with competitive pricing, myPOS provides a comprehensive ecosystem of services, including:

• A merchant account;
• Online transaction management;
• Real-time reporting;
• Additional features like invoicing and inventory management.

Overall, myPOS offers tailored solutions to enhance small businesses’ payment processing with affordability and functionality.

Learn more about card payments and card machines

• PDQ machine: How does it work?
• Everything you need to know about the card reader
• Contactless not working: how to fix it
• Credit card processing: how does it work?
• How to start accepting card payments