In an attempt to streamline the process of contactless chip credit card terminal adoption, Visa recently announced a plan to increase conversion rates.
Visa is pushing EMV (Europay, MasterCard and Visa) contactless chip technology to help prepare stores for the emergence of near field communication mobile payments. Visa already has a mobile wallet service, Isis, in the works, and the switch from magnetic strips to chips will act as an effective buffer for the change.
“By encouraging investments in EMV contact and contactless chip technology, we will speed up the adoption of mobile payments as well as improve international interoperability and security,” said Jim McCarthy, Visa’s global head of product.
The computer chip would replace the traditional magnetic strip on credit credits, The Point of Sale News reports. It contains an embedded microprocessor that increases security and contains information needed to make a payment. The chips are already being utilized regularly outside of the country, as more than 1.24 billion EMV-compliant chip-based cards were in use worldwide by the end of 2010, the news source adds.
However, stores must install chip-specific credit card terminals. In order to increase this likelihood, Visa has offered to drop its annual mandatory audit requirement for merchants who can document that they’re using terminals that accept the cards by 2012.Back To Blog