Spring 2008

Industry News & Trends Canada: the land of e-commerce opportunity Vendor solutions help you put everything together Fraud Prevention Chip & PIN-enabled cards and terminals are here! Merchant Spotlight Merchant Success Story: Your Friend With a Cube Van Merchant Success Story: The Cheese Boutique

Chip & PIN-enabled cards and terminals are here!

Introducing the future of plastic: chip & PIN-enabled cards. They look pretty much the same as any other card -- except for the addition of a shiny pattern of lines and shapes, about the size of a fingernail.

The embedded microchip works with a PIN -- rather than a signature -- to authenticate the cardholder. While the chip cards significantly reduce card counterfeiting, chip technology provides increased protection against fraudulent transactions. But there’s more.

What’s in it for your business?

• You and your staff will no longer be required to verify signatures.
• You’ll experience faster checkout speed.
• Increased customer satisfaction – 80% of Canadian credit cardholders prefer the security chip cards offer.¹

Virtually copy and tamper proof, the chip cards are now almost entirely adapted across Europe. Over 86 countries worldwide have already successfully migrated to chip. In fact, over 262 million Visa™² and over 248 million MasterCard®³ chip cards have been issued worldwide. In 2008, the cards and terminals have started to be used across Canada. By 2010, mostly all Canadians will be carrying a chip-enabled card, and merchants across Canada will have chip enabled terminals.

How does it work?

Transactions with chip-reading terminals are simple. Rather than swiping the card and signing a receipt, the customer uses a PIN to authenticate the cardholder. Here’s how you’d use a chip-reading terminal.

1. Once the purchase is completed, the customer inserts the card into the chip-reading terminal. Your staff will not have to swipe the card.  
2. The card remains in the terminal – and within the customer’s view -- for the duration of the transaction.
3. The terminal will guide the customer through the transaction and prompt them to provide their PIN to verify themselves.
4. Upon approval, the customer will remove their card and receive a printed receipt. No signature is required.

The chip & PIN card will continue to feature the magnetic stripe that will allow the card to be used in conventional terminals. You’ll swipe the card. And the customer will sign the printed receipt.

With full rollout of the new cards expected to begin in 2008, it’s a good idea to start preparing your business right now.   

For more information, visit:
interac.ca
mastercard.com/canada
visa.ca
Moneris.com/chip

1 Source: Visa Canada I. Visa Canada Consumer Survey: Maritz Thompson Lightstone Research (2004).
2 Source: Visa International Service Association.
3 Source: MasterCard Canada Inc.
™ Registered trademarks of of Visa Canada Inc. Moneris Solutions Corporation is a licensed user.
® Registered trademark of MasterCard International Inc.