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Accepting Chip Cards

Help Protect Your Customers & Your Business with Chip Card Technology

In today's environment, new payment technology is constantly being developed to help fight fraud so businesses like yours can continue to accept payments quickly and securely.

How Does Chip Technology Work?

Chip Card Infographic
Step 1 – Insert Card Step 2 – Leave the Card in the Terminal Step 3 – Remove Card from Terminal
Instead of swiping, the card is inserted into the terminal, chip first, face up. The chip card must remain in the terminal during the entire transaction. Then the customer signs the receipt or enters the PIN to complete the transaction. Once the transaction is complete, remind the customer to take the card.
Touchless Terminal Icon

Contactless Payment
Hold the contactless chip card or mobile device up to the payment terminal for a few seconds, until the 4 lights flash and a beep is heard signifying the contactless chip card or mobile device has been successfully read.

Prepare to be EMV‐ready

Upgrade to chip‐enabled terminal and application (hardware and software). Merchants enrolled in our Supplied Equipment Program (SEP) will have access to the latest, most secure, fully compliant terminals and applications available.

Included SEP Features
Checkmark Icon EMV/NFC (Apple Pay) capable terminal
Checkmark Icon Countertop and wireless options offered
Checkmark Icon Chip and PIN enabled terminal
Checkmark Icon Choose from the most secure, up‐to‐date terminals
Included SEP Benefits
Checkmark Icon Receive a new terminal every 36 months*
Checkmark Icon Save time and money
Checkmark Icon 36‐month, full equipment protection plan
Checkmark Icon Overnight replacement

Three Key Reasons to Upgrade Now

  1. As of October 1, 2015, liability shifted for the cost incurred from counterfeit card fraud from the issuer to the merchant, if the issuer has supplied their cardholders with chip cards but the merchant is not using a chip‐enabled terminal.
  2. Chip technology can help to reduce fraud by validating the card and rejecting counterfeit cards.
  3. As a merchant, you never want to lose a sale. Currently, chip cards will still have the magnetic stripe and will be usable at older terminals. However, as consumers are educated on the added security provided by chip cards, they may choose to only shop at stores with EMV‐ready terminals.

Contact your Johnson Bank Representative to upgrade to a chip‐enabled terminal and application (hardware and software).

Liability Shift

As mentioned above, it's important to understand that a liability shift occurred on October 1, 2015 if you haven't upgraded to a chip‐enabled terminal for most merchants (excluding petroleum pay‐at‐pump merchants who have until October, 2020). This change results from decisions made by card brands like Visa® and MasterCard®.

This change shifted the liability for the cost incurred from counterfeit card fraud from the issuer to the merchant, if the issuer has supplied their cardholders with chip cards but the merchant is not using a chip‐enabled terminal.

*New terminal opportunity is contingent upon renewed contract.

No Tip After the Sale

Another important fact to know about chip card requirements is that all adjustments to the original transaction must be made at the time of sale—this includes tip amounts.

Since chip transactions require that the card cannot leave the cardholder's presence and the total must include any tip amount before the transaction is submitted, some merchants will have to reconsider how they conduct their payment process.

Countertop Chip‐enabled Terminals without a Chip‐enabled External Pin Pad

Merchants with this scenario will need to physically turn their terminal to face the customer so they can insert their chip card, and if tips apply to their business the customer will need to enter that amount before transmitting the transaction.

Countertop Chip‐enabled Terminals with a Chip‐enabled Pin Pad

Customers will be able to insert their chip card into the chip‐enabled external PIN pad. Merchants with this scenario are already using a technological combination that makes the chip card experience convenient for a customer to use, and add a tip amount if necessary.

Wireless Chip‐enabled Terminals

Merchants with this scenario are already efficiently accommodating the chip card process for their customers, and providing customers with a wireless terminal also enables them to easily include a tip amount, when applicable.

For merchants that incorporate tips and have employees take payment at a customer's location, be it a server returning to a restaurant table or home repair businesses making house calls, their employees will either need to carry a wireless chip‐enabled device with them or the customers will need to return to a centralized location where they can access the merchant's countertop terminal and make their payment, with tip if desired, at that time.