1. Explain what chip cards are, and why they’re being used in the U.S.

Chip cards, based on a global card payment standard called EMV, are payment cards that have an embedded chip. When used for an in-store transaction, the chip offers advanced security by making every transaction unique. And, chip cards are more difficult to counterfeit or copy. If the card data and the one-time code are stolen, the information cannot be used to create counterfeit cards and commit in-store fraud. For merchants who accept chip payments, this means a higher level of security for their business and for their customers. 

Chip cards are currently used in more than 80 countries, and there are more than 3.4 billion chip cards issued across the globe. Accepting chip cards in U.S. stores will allow for interoperable cross-border transactions, so travelers can make secure purchases without worrying that their cards won’t be accepted when they visit the U.S.

2. Clarify why accepting chip cards will benefit their business

For merchants, it’s important to show that their customers’ information security is important to them by making the move to chip. Plus, accepting chip cards in their physical stores protects them from absorbing increased liability for costs resulting from fraud starting in October 2015 (see the liability shift section below for more details on fraud liability). 

Be sure to tell your merchant customers not to wait until October to begin thinking about the migration to chip. Instead, the transition should be carefully planned in advance to allow enough time for the required testing and training. 

3. Show how to complete a chip transaction

For a seamless transaction and a better consumer experience, merchants and their employees must be knowledgeable on the chip transaction process to help consumers who are new to chip cards. 

During the transition to chip, consumers are being told to swipe their card as they normally would and follow the prompts. If the terminal is chip-enabled, it will prompt them to insert the card instead. If your customer has chip-enabled terminals and sees that the consumer has a chip card, they can tell them to insert their card for a chip transaction.

Teach your merchant customers how to ensure a successful chip transaction by using these basic steps:

  1.  The consumer should insert their card with chip toward terminal, facing up. The chip card should not be removed until the consumer is prompted.
  2.  The consumer will provide their signature or PIN as prompted by the terminal. Some transactions may not require either. 
  3.  When the terminal says the transaction is complete, the consumer can remove their card.

If the consumer has questions, retail employees should remind them to follow the prompts on the terminal and leave their card inserted until prompted to remove.

Merchants can also take advantage of preexisting resources such as a training infographic, FAQs and communications best practices to educate their customers.

4. Clarify what the liability shift is and how it impacts their business

The rules are changing. Starting October 2015, when a merchant accepts a magnetic stripe card that was counterfeited with track data copied from an EMV chip card and has a point-of-sale terminal that is not EMV chip-enabled, the merchant may be liable for the fraudulent transaction. Before the shift, issuers had the fraud risk for counterfeit card usage at in-store locations. 

Implementing chip technology is not a mandate, so it’s important that you educate your customers so they understand the impacts their decision will have on their business. 

5. Outline important next steps

Explain clearly what you can do for your customer and how you can help to simplify the transition to chip. Show your customers that their understanding of chip and what it means for their business is important by directing them to GoChipCard.com/merchant. GoChipCard.com/merchant is the official go-to resource on chip technology for merchants and provides resources including communication best practices, training FAQs and infographics.

This information was excerpted from GoChipCard.com, the official go-to resource on chip technology for consumers, merchants and issuers.