Gone are the days when customers come to you with cash and made cash payments. The new trend of paperless transactions is here to stay. Credit card and debit card usage has become so popular that businesses, whether big or small, can no longer afford to ignore this shift in consumer mindsets. They must adapt to the change to keep pace with the times. This trend of card payments is catching on everywhere—it is being adopted by cities all over India and by huge swathes of society. Although complete penetration of POS terminals has not yet occurred in the country, the post-demonetization period has witnessed a tremendous increase in the use of POS by businesses. Here is a brief outline of the best practices that a business must follow in setting up a POS terminal:
Tips to Use Swipe Machines Safely
Swipe Machines Are Your POS Partners—Make Them Safe
Nowadays, a swipe machine is a common sight in the payment counter of most businesses/shops. Not having a swipe machine might cause you to lose customers because a lot of people no longer carry cash while shopping. You must also ensure safety in the use of swipe machines. You cannot afford to be careless while dealing with your customers’ money. Your customers trust you with their sensitive data and you must prove yourself to be worthy of their trust.
Also Read: Top 7 Mistakes Retailers Make When Choosing A POS
The technology and compliance standards a business should follow to ensure safety:
Using a swipe machine backed by strict technology and compliance standards is the best way to reassure customers about the safety of their data. Let us see how a business can achieve this in their POS transactions:
Replace the magnetic swipe technology with Chip and PIN:
Earlier businesses relied on magnetic swipe technology to process card payments. But this system is prone to tampering, especially if the card is lost. The validation depends on a physical signature, and it is quite easy to forge a signature. A Chip and PIN system is more effective as it runs on the PIN verification done by the bank. Hence, it is a highly secure and encrypted technology and is fast to boot.
Ensure that you are following global compliance standards:
There are certain compliance standards that a business must follow to improve its credibility in the customers’ eyes, the most important of which is the Payment Card Industry Data Security Standard (PCI DSS). It provides a set of universal standards that should be in place while handling and storing sensitive credit card information of customers. Businesses violating these frameworks also run the risk of incurring huge fines that can be imposed by Visa, Mastercard, and other members of the credit-card association.
Also Read: Best Practice For Mobile Shops
End-to-end encryption and SSL protocol:
Implementing these security methods can assure safe data transmission from the card reader to the processor. SSL protocol for online systems also enhances security by protecting sensitive data from hackers. This method ensures that certain security controls are in place while you process your customers’ cards, thus consolidating the credibility of your business.
Swipe the card carefully
When you swipe your customer’s card, keep the following key factors in mind to reduce errors from your end:
Verify the signature:
The customer’s signature on the card should be cross-checked with that on the transaction slip. If you detect even a slight mismatch, you must confirm the customer’s identity by asking them to produce ID proof like Aadhar card or driving license.
Keep the swipe machine locked when it is not in use:
This is necessary to prevent the machine’s misuse in your absence.
Train your employees:
Train your employees to familiarize them with the various features of the swipe machine so that they become adept at handling it.
Things to look out for while buying a swipe machine
Getting the right swipe machine can simplify your transactions and ensure safe processing. Select an easy-to-use machine, because your employees will have to handle it day in and out. Also, look for a swipe machine that can generate a printed receipt for every transaction. This will ensure accountability and record-keeping.
Apply For Loan Against Swipe Machine
The increasing demand for swipe machines from businesses means that there are several players providing POS solutions for cashless payments. Therefore, it is necessary to select the safest solutions that can guarantee a trusted payment system for facilitating smooth transactions. However, not every business person is aware of the technological and legal requirements that have to be followed while installing a swipe machine.
Indifi offers unsecured business loans based not only on bank statements but also your business transactions through swipe machines. For business growth, apply for a business loan.