thom02099 wrote:There are still some mom & pop businesses that use the old presser/slider machines. Likely because they don't want to/can't pay swipe fees to accept credit cards.
If they use manual authorization method like imprinting, would that be considered as a card not present transaction which pays higher discount rate?
AFAIK even if magnetic strip is less secure nowadays, it is still less risky than taking down card number by hand. Merchant discount rate and interchange reimbursement fee should somehow be related to fraud risk. Those small businesses keep old machines may be because of not wanting to afford a POS terminal, more than the merchant fee. It's just like what many small businesses will need to change their terminals to EMV equipped nowadays, which can be costly.
thom02099 wrote:And if one doesn't have a card with embossed numbers, the business person can still hand write the numbers on the credit card form.
True. Technically merchant never needs embossed cards to take down numbers. Even if the customer is not in the store so the card is not shown, merchants can still key in numbers on POS terminals or do voice authorization. Only full card number and CVV is needed to complete the transaction. Name on card is not even required. Do they want to, is the question to be answered by merchants.
thom02099 wrote:Sooner or later, everyone will most likely have to go to the newer formats, printed and matte, no embossment. It's just the way things seem to be going.
I can see Citi is already doing this. They have some new designs for their current products that prints card number on the back, just like what Discover it does.