How Small Businesses Can Use Chip And Pin Machines As Payment

If you have a small business and you are more likely than not trying to improve the ways you receive payments. Have you tried lots of payment methods but nothing seems to work? The good news is, there are various options and alternatives. The era of consumers carrying cash with them is pretty much over, with this having long given way to debit and credit cards. Not to mention the rising number of businesses which operate online these days, making accepting cash essentially impossible.

It is, therefore a core requirement for all businesses these days to be able to accept card payments. A chip and PIN machine is one of the best payment options for a small business, with common types being SumUp chip and PIN reader, PayPal reader and WorldPay reader.

Before using a chip and PIN machine, there are some essential facts you’ll need to know about and, which terminal is the best for your business. Let’s dive in.

1. What Is A Chip And Pin Machine?

This is a type of machine which processes payments made by any credit or debit card. Your customers will insert their card into the chip and pin machine, and a prompt appears asking them to enter their four-digit PIN to confirm the transaction. This information is then send to the customer’s financial institution and the transaction is electronically approve. The chip is an additional level of security to confirm that it is a valid card. This method of payment came into being to reduce the rate of card fraud and provide a secure way of processing card transactions.

2. How Do Chip And PIN Machines Work?

Chip and PIN machines make use of a secure PIN for transaction authorization. It is more secure than the old system of swiping of cards and signing for verification. The chip on the card stores and holds the data of the card owner, compared to the previous form of cards which stored information on a magnetic strip. The chip also processes relevant information.

When you insert a debit or credit card into the chip and PIN machine, the chip in the card begins to process and transmit information in order to authenticate the card. If there is a match between the number on the chip and the PIN which is enter, the purchase is approved. After approval, the retailer’s account will be instantly credited.

3. Choosing The Best Chip And Pin Payment Machine For Your Business

There are a range of chip and PIN machines available, each with different features and capabilities. For a small business, it is important to educate yourself on choosing the best one for your purposes and your budget.

Here are the different types and their pros and cons:

a. Counter-Top Chip And Pin Machine

If your payments always take place in a fixed location, this chip and PIN machine could be a good option. It is often used in shops, hair salons, and local businesses. The counter-top chip and PIN machine must be placed on the top of a shop counter (as the name suggests) and connected to an internet or phone line.

b. Portable Chip And Pin Machines

Businesses such as cafes, pubs, restaurants, and bars often use this type of chip and PIN machine. It uses Bluetooth connection to connect the scanner to the base. The base of the device can be up to 100m away so connection errors during transactions are unlikely within any normal business location. The portable chip and PIN machine can generally run on a single charge for hours.

c. Mobile Chip And Pin Machines

Businesses on the go like retailers whose business are not fixed to a set location should look at this type of machine. This includes couriers, taxi drivers, food trucks and market stalls. It has a pre-installed SIM card which allows you to connect via the mobile network and process any payment anywhere. Models generally have a long battery life, and are not limited by distance.

4. How Much Do Chip And Pin Machines Cost?

If you are considering purchasing a card and PIN machine for your business, there are a few fees that you should take into consideration.

a. The Cost Of Buying A Chip And PIN Machine. This fee depends on the type of business and the card terminal provider. The providers of chip and PIN machines usually take into account factors like your turnover and average daily transactions.

b. A Small Monthly Spend For Card Terminals. There is a small monthly fee, which will vary according to the card terminal provider and the service chosen.

c. Transaction Fees On Each Transaction. This is can be a percentage or flat rate.

5. Benefits Small Businesses Can Expect From Using A Chip And Pin Machine

a. Your customers have additional payment options, meaning more sales and more profits.

b. Faster and more secure transactions. Handling a lot of cash can make you vulnerable to theft.

c. More accurate. Eliminates certain human errors such as giving incorrect change.

Small businesses can use chip and pin machines as a means of quickly and easily receiving payments, These machines require little training and the costs involved are usually easily covered by the additional sales they facilitate.

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