Consumers Not Happy with Chip Credit Cards

Credit and debit cards with a security chip feature are becoming more common, but consumers aren't necessarily happy with the feature, touting long lines at checkout as a prime reason for the dissatisfaction, a survey conducted by mobile payment company Square found.

In a blog post, the company said nearly 75 percent of cards processed on Square contain a chip, which is up from the same time last year when 40 percent of cards processed on Square contained a chip.

Square conducted a survey of more than 1,000 consumers and found that respondents reported the speed of transactions as the most frustrating element with cards equipped with chips. More than 87 percent of consumers reported being frustrated with the long lines. As Square notes, chip cards take longer to process because of stronger security checks. While consumers reported being frustrated with long lines, they ranked security as the most important element when it comes to paying.

When it comes to security, Square says wireless mobile payments are the safest forms of payment. Most consumers surveyed by Square had not adopted mobile wallets such as Apple Pay, but Square reported that those who had cite it as their ideal method of payment. Unsurprisingly, mobile wallets are more popular among millennials. The survey found 45 percent of millennials (18-34) used wireless mobile payments, and 26 percent of consumers above the age of 35 used mobile wallets.

According to Square, near field communication (NFC) that enables wireless payments allows users to activate fingerprint identification technology. NFC technologies also use sophisticated layers of security that is not available in any other method.

Mobile wallets use a technology called tokenization. Mmobile wallets randomize a credit or debit card number during a transaction. Since a random string of digits is sent to a retailer instead of actual account numbers, it’s much more difficult for hackers to steal customers’ financial information from stores.

Read more: https://squareup.com/townsquare/what-consumers-think-about-chip-cards-and-mobile-payments/

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