What is a Card Present Transaction?
Accepting credit card payments in person with a mobile device reader which captures data from swiping a magnetic strip card, dipping an EMV card, or tapping for NFC / contactless transactions, such as a smartphone utilizing Apple Pay. A card present transaction is not only secure for your business but it also creates a sense of security for your customer.
Why should I accept payments in person with a card reader?
There are many reasons to care about accepting a card present transaction. The main reasons are:
1. The card present transaction will help lower your cost of processing
2. The card present transaction will help lower your chargeback liability
Lower Processing Fees
Keying in card information will qualify the transaction as a card not present transaction which will always have a higher cost. The higher cost usually always come from the credit card processing fees that make up your rate which are interchange fees, assessment fees, network fees, etc. The fees for card not present transactions are always higher because the chance for fraud and chargebacks are much higher.
With a card present transaction, the cardholder is physically present with the card at the point of the transaction. Credit card processing fees are much lower for card present transactions because the reduction in liability in fraud and chargebacks are much lower. Thus, qualifying you for lower cost credit card processing fees, and ultimately saving you money.
Reduce Chargeback Liability
Card networks (Visa, Mastercard, Discover, AMEX) and processors presume card-present transactions are less of a risk. However, as a merchant, you will always have liability for chargebacks with card present transaction, but your chances with the card not present transactions will usually be a lot higher.
The EMV liability shift that took place a couple years ago now plays a crucial role in your business regarding EMV chip cards. However, if your business accepts an EMV card by swiping and/or keying it in you’re liable for the fraud that can occur. Using an EMV capable card reader, the fraud stays with the processor.
Speak with a payment consultant today to learn how to not only lower costs from credit card processing fees but to also process more secure transactions. Call us at 800-947-3156 to see how we can help your business!