Chip and PIN is a way of verifying that the person presenting a card is entitled to use it: the chip authenticates the card and the PIN authenticates the person. Every card terminal in this index supports it, and it is the fallback whenever a contactless payment cannot complete.
When the counter needs it
Whenever a sale exceeds the contactless ceiling, whenever a card has tapped enough times to require verification, and whenever a card simply refuses the tap. In practice that is several times a week in most shops, which is why every terminal here has a keypad and why a tap only device is not a serious option for a trading business.
Why it matters in a dispute
A transaction verified by PIN carries different liability from one that was not. That is why staff must never enter a customer's PIN and why handing the terminal over is part of the process rather than a courtesy. If you later face a chargeback, the verification method is part of the evidence, and a PIN entered by your own staff undermines it.
What it costs
Nothing extra. Providers charge the same in-person rate whether the card is tapped or inserted; only the card type changes the price. Published in-person rates on this shelf run from 0.79% to 1.75%, with commercial, American Express and non UK cards priced above the headline at most providers.
Questions people ask about chip and pin
What is chip and PIN?
A card verification method where the chip authenticates the card and the customer enters a PIN to authenticate themselves. It is the standard fallback when a contactless payment cannot be completed.
Do chip and PIN payments cost a business more?
No. The rate depends on the card type, not on whether the customer taps or inserts. Only commercial, American Express and non UK cards are priced differently.
Can staff enter a customer's PIN?
No. The customer must enter it themselves. Beyond the obvious security point, a PIN entered by staff weakens your position if the transaction is later disputed.