Why Chip Card Transactions Are Slower and How Quick Chip Can Help

Introduction
Chip card transactions, also known as EMV transactions, can sometimes be slower than the traditional mag stripe transactions. This article explains the reasons behind this phenomenon and introduces the new technology called Quick Chip that can streamline the transaction process.

The Issue with Chip Card Transactions

Transaction Speed Variability
Chip transaction time can vary greatly based on terminal, processor, and telecommunications configuration. Unlike mag stripe transactions, where the card is quickly swiped, chip cards involve a more involved process. The consumer experience is different, and it takes longer before the card can be returned. This delay stems from the communication line and the server load handling the transaction.

Underlying Transaction Process

The Chip Transaction Process
During a chip transaction, the chip on the card takes unique data from the transaction, uses an encryption method to calculate a cryptogram, and sends this along with traditional transaction information to the network and issuer for processing. One of the crucial pieces of information the chip requires is the total amount of the purchase. Therefore, the chip cannot start working until the total is definitively known.

Step-by-Step Process

The transaction proceeds as follows:

Calculation of Cryptogram: The chip calculates a unique cryptogram using the total purchase amount as a key. Transmission of Details: The calculated cryptogram and other transaction information are sent to the network and issuer for processing. Issuer Verification: The issuer calculates the cryptogram using the secret key shared with the chip. If the result matches, the transaction is deemed valid. Approval Process: The authorization is then sent back to the terminal to approve the transaction, and the chip is authenticated. A dynamic counter on the chip resets with the approval message.

Quick Chip: A Solution to the Problem

Streamlining the Chip Transaction Process
Quick Chip is a new technology designed to make chip card transactions faster. By enabling customers to dip and immediately remove their EMV chip card from the terminal in typically just two seconds or less, it eliminates the wait for the transaction to finalize. Consumers and issuers don't need to do anything as this upgrade is purely in the software of EMV-enabled terminals. Merchants can upgrade for free, and the process is straightforward and efficient.

Optimizing the Transaction Experience

Efficiency in Merchant Terminals
For the transaction process to run smoothly, merchants need to ensure their terminals are optimized. This includes configuring the terminal to only prompt the cardholder to insert the card once the total amount is known. Inefficient steps can make the process slower and feel longer. For example, the terminal should not require the cardholder to insert the card before the total is finalized.

Personal Experience with Quick Chip

Successful Implementation
A personal experience with a Clover terminal at a local lunch place serves as a prime example of how effective Quick Chip can be. The terminal is very fast and user-friendly, making the entire transaction process seamless and quick.

Conclusion

The slower transaction time for chip cards is primarily due to the complex process of verifying the transaction details. However, with the introduction of Quick Chip, the transaction process can be significantly streamlined, enhancing the consumer experience. By ensuring terminals are properly configured and updated with the latest software, businesses can provide a fast and efficient checkout process.

Related Keywords

EMV transactions, chip card transactions, mag stripe transactions