A chip and PIN payment authenticates the card through its chip and the cardholder through their PIN, then sends an authorisation request to your acquirer. The whole exchange takes about two seconds. The reason to do it properly is not speed but liability: the verification method is part of the evidence if the transaction is later disputed.
Completing one correctly
Enter the amount, check it on the customer facing display, present the terminal, let the customer insert the card and enter their own PIN, and wait for the approval before handing anything over. Do not take the machine back to enter the PIN and do not retry a declined card more than once. Those two habits cause most avoidable disputes.
What the transaction records
The card, the amount, the time, the terminal and the verification method. That last field is what distinguishes a PIN verified sale from an unverified one, and it is what your acquirer will look at first in a chargeback. A sale where staff entered the PIN looks, in the record, exactly like a sale where the cardholder was not present.
When a chip payment fails
A declined chip payment is a decision by the customer's bank and is not something your terminal can override. Retry once at most. If the chip cannot be read, the terminal may offer a fallback, and a fallback transaction carries different liability, so use it only when the customer is present and known to you.
Questions people ask about chip and pin payment
How do I complete a chip and PIN transaction?
Enter the amount, show it to the customer, present the terminal, let them insert and enter their own PIN, and wait for the approval message before releasing goods.
What is a chip and PIN transaction in a dispute?
A transaction where the record shows the cardholder verified themselves by PIN. That verification method affects how a chargeback is assessed, which is why staff must never enter a customer's PIN.
What should I do if a chip payment is declined?
Retry once at most, then ask for another payment method. The decline is the issuing bank's decision and your terminal cannot change it.