Chip and PIN card terminals represent the payment terminal industry’s best hope against card fraud.
With Chip and PIN technology, a customer’s card is verified by an embedded chip, and a four-digit code is used to authorise the transaction. Of course Chip and PIN terminals are not entirely impervious to theft. Their vulnerability can be broken down into two types:
- The card’s magnetic stripe can be copied so that a cloned version could be used for verification, or card readers would take any code as authorisation for a transaction.
- A card thief can look over the card owner’s should to glimpse the authorization code and the steal the card.
Steps to fight credit card fraud
Make sure to keep a close eye on anyone who comes into your place of business to repair or otherwise interact with your card terminals. Compromised terminals could lead to serious problems for your business, so it is much better to be safe than sorry.
If you notice someone standing too close to a customer when they are entering their code, politely ask that person to step back until the other customer is finished. Many retailers mark off the transaction area with floor signs to avoid this potential problem.