Chip Card FAQs

What is a chip card or smart card?

These are credit and debit cards with a small secure microchip built into the card. Chip-enabled cards are also sometimes referred to as “EMV cards” or “smart cards.” The cards offer enhanced security by generating authentication codes dynamically when a cardholder makes a purchase.
 

This means that when cardholders enter their PIN or sign for a purchase, the amount is processed using a code that is different every time — making it virtually impossible for theft to occur by copying card data electronically.
 

How is an Chip Card terminal used?

Chip card terminals are used to accept microchip-enabled cards, which offer enhanced protection against fraud.  Your customer will insert their card into the terminal. Sometimes they will be prompted for their PIN.

Will customers still need to sign?

Sometimes. Some cards may still require a signature instead of a PIN.

What are the business benefits of using a Chip card terminal?

By implementing chip card technology, customers will have greater trust when they shop with you. So the business will benefit by building customer loyalty — and you’ll also see reduced payment fraud from counterfeit, lost, and stolen cards.

Plus, you’ll also be able to accept mobile payments, from people using tools like Google Wallet and Apple Pay, which are becoming more and more popular with young consumers.
 

About how much does it cost my business?

The costs vary based on the type of merchant processing equipment & products a business uses. Contact your Horizon Bank Advisor for suggestions on the best product to suit your business needs.

How will restaurant owners be affected by chip card technology?

Small restaurants or quick service restaurants will also be realize the shift in liability should it process a counterfeit transaction using a non-chip card terminal.  Restaurants will be required to process customer payments at the table or at a counter where the credit or debit card never leaves the card holder’s possession.  In addition, the tip function for table side service will no longer be available.  All tips will be included in a single credit card transaction.

What kinds of chip card terminals are available, and how do I choose?

Contact your business banker to discuss the best product for your business needs.

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Disburse Payments


Business Need

Horizon's Solution

Eliminate paper checks to employees

Direct Deposit

Make purchases directly from your account

Debit Card

Earn reward points while managing employee spending

Credit Card

Manage large volumes of employee expenses

One Purchasing Card

Make payments electronically like payroll or taxes

ACH Payments

 

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