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The logistics behind a transaction with a magnetic stripe card are completely different when it deals with a PIN card.

In the first case the cardholder can leave his card with the waiter and let him process the whole transaction until he has to sign the receipt.

In the case of the smart card, the customer has to enter his Personal Identification Number in the payment terminal in order to complete the transaction. This means he must go wherever the POS is. If the restaurant is equipped with countertops, that would mean the customer has to stand up and walk towards the counter.

For this simple reason, many cardholders prefer paying by credit card, instead of using their debit card, even if both consumers and merchants accept on-line debit cards. The first ones for the security and ease of use it offers. The others as it reduces their cost of payment.

In addition, with the introduction of EMV on a world wide scale magnetic stripe cards are slowly being replaced by smart cards as they offer a higher level of security for all the participants. This migration to EMV and thus to PIN based authentication ensures that the customer will have visibility of their card throughout the payment process.

PIN Based transactions logistics / Fraud / Business efficiency