Credit Card Machines - Mobile Chip and PIN Payment Solution | SumUp (2024)

FAQs

What is a chip and PIN payment method? ›

What is chip and PIN? Chip and PIN is a payment method that requires someone to use their card and enter their Personal Identification Number (PIN) to make a purchase. Credit and debit cards contain a square-shaped microchip that stores unique information about each transaction.

How does a chip and pin machine work? The customer inserts their card into the chip and pin machine, and the machine reads the information on the chip. The customer then enters their PIN to confirm the payment, and the machine sends the payment information to the payment processor, which authorizes the payment.

This microchip contains details about the user's card and account – like their name, account number and card expiry date. A chip and PIN card machine reads this information and asks the user to enter their secret 4-digit PIN (personal identification number), which allows the payment to complete.

A credit card PIN, or personal identification number, is typically a four-digit code you use to verify that you're the owner of a credit card. Like a signature, it's used to verify your identity and helps protect you against fraud. In the U.S., you may be required to use this code for a cash advance at an ATM.

When making a purchase, chip-and-PIN cardholders insert their card into the merchant's point of sale (POS) terminal, or wave it over the terminal, so that the microchip can be read by the machine. The POS terminal then prompts them to enter their PIN, in order to authorize and complete the transaction.

Sometimes when your chip stops working it's because there's an issue with your account. Common reasons include going over your credit limit, the billing info doesn't match with your account, or you're making purchases in locations where you don't normally shop.

Slow Transaction Speed: One of the drawbacks of chip and PIN technology is that it can be slower compared to magnetic stripe transactions. The process of inserting the card into the terminal, waiting for the verification, and entering the PIN can take slightly longer than a swipe-and-sign transaction.

Whether through chip and PIN, magstripe or the NFC/contactless option, when your customer presents their card, your mobile card reader will read the data on the chip of the customer's card. The machine will then send the transaction details to your merchant account.

Chip&Pin credit card transactions are a lot more secure than traditional magnetic stripe transactions. In fact, when paying with your Chip & Pin credit card, a one-time code is created, that moves between the card's chip and the retailer's point of sale terminal, so the data is useless except to the parties involved.

You'll know you have a chip-and-PIN credit card if you were given a 4-digit PIN when you received your card, or if you had to create a PIN after the card arrived. You should also be able to tell if you're prompted to enter a PIN, rather than sign, when you insert your card at a payment terminal.

How to run a chip debit card as credit without a? ›

Insert your card with the chip end into the chip reader slot of the point-of-sale device. Leave the card in until the device prompts you to remove your card. Generally, this method defaults to the 'credit' option.

Using your credit card doesn't usually require you to enter a PIN. Everyday purchases in stores and online usually have several credit card payment options: entering the card information, swiping the magnetic stripe, making a contactless payment and inserting the card's chip.

With some POS terminals, cardholders can also choose to run debit cards as credit cards. In these situations, they don't have to enter the PIN, but they may have to sign for the transaction.

Once inserted, the EMV chip transmits to the card reader an encrypted, one-time code containing the card information. This is what makes EMV chip payments much more secure than swiped card payments: The real card number is never transmitted, and therefore remains protected in the event of a security breach.

Chip&Pin credit card transactions are a lot more secure than traditional magnetic stripe transactions. In fact, when paying with your Chip & Pin credit card, a one-time code is created, that moves between the card's chip and the retailer's point of sale terminal, so the data is useless except to the parties involved.

Chip-and-PIN credit cards have long been accepted throughout Europe. They are more common and considered more secure than the chip-and-signature cards we have in the U.S. Contactless credit cards are also widely accepted there.