Who is Impacted by the Migration to Chip Technology?
The successful implementation of chip in Canada requires the efforts of multiple stakeholders. The payment networks have provided technical specifications, policies, testing, certification services, support and have upgraded their proprietary networks. Issuers have made significant investments in system upgrades and in issuing chip debit and credit cards to customers. All Automated Bank Machine (ABM) devices are being upgraded to accept chip cards. Acquirers and Processors, including Global Payments, have invested in the upgrade of back end systems and upgrading and replacing POS terminals.
Merchants are key players in Canada’s migration to chip. From the upgrade of proprietary payment systems that will support this technology to the training of customer facing staff, merchants have an important role to play. The ultimate goal in Canada’s migration to chip is the seamless adoption of chip technology by both merchants and consumers.
As Chip & PIN becomes a card acceptance requirement within Canada, and as the Canadian chip migration gradually occurs, more and more of your customers will present their chip cards at your merchant location(s). While magnetic stripe cards continue to be widely accepted, chip-enabled cards reflect the technology of the future.
What Changes with Chip?
- The introduction of chip cards will result in some changes at a chip-enabled Point of Sale (POS):
- The card will no longer be swiped but will be inserted into the terminal and will remain there for the duration of the transaction
- Instead of signature authentication for credit transactions, consumers will typically be asked to validate transactions with a PIN (Personal Identification Number). Interac debit transactions will continue to be validated with a PIN as they are today
- Customers may maintain control over their payment cards, depending on the terminal configuration