Hit with a 'sled' or a 'fallback transaction' on your chip credit card? We have answers
If you own an EMV chip card, you’ve undoubtedly experienced this checkout cha-cha: You slide it into the downward-facing slot and nothing happens.
Or the terminal screen tells you to try again.
Or the cashier tells you to “just hold it there.”
Or between the two, you’re instructed to just swipe the dang magnetic stripe to get this purchase started.
Why does this new, more secure Card 2.0 that the rest of the world has enjoyed for years seem to encounter so many misfires here in the United States?
Unlike other regions of the world, chip card introduction hasn’t been legislated or mandated by the government. As a result, we’ve had kind of an uneven implementation across the country.
How uneven? Well, to find out, we decided to break it down for you with the help of two global EMV experts: Allen Friedman, vice president of payment solutions for merchant payment provider Ingenico, and Jamie Topolski, director of payment card products for Fiserv.
We compiled a list of questions related to common EMV chip card errors. Here are their answers:
There are one-off problems, there are certainly merchant-specific problems, but nothing systematic or widespread. According to recent statistics on fallback transactions (in which you fall back to swiping the mag stripe), we’ve gone from a little more than 3 percent in 2016 down to under 2 percent in 2017.
Over 3 percent is considered unacceptable, while 2 percent is considered average, given that 1.5 percent of all credit cards issued may be flawed or damaged. So, we’re getting down to the normal percent of failure on chip cards.
Sometimes they just haven’t invested money to do it, sometimes it’s because they don’t want to do it, and sometimes it’s because they are still working on getting an application certified.
And because the applications have to be certified with each card brand through the merchant’s acquirer or service provider, that can take some time.
If the terminal’s application cannot read the chip, it will say “failure” or it may say “retry,” because it could have just been a bad insertion, a bad angle or not inserted all the way.
So, it may tell you to retry it once or twice, and then, if it’s still not working, it will go to fallback and say, “Please swipe card.” Then, when you go to swipe the card, it allows you to swipe without being prompted to insert the card. All cards can be swiped, as long as they have a magnetic stripe.
We recommend one or two more insertions, just to make sure it’s not being inserted upside-down or backward.
That’s most likely a problem with the terminal hardware. There is typically what we call a sled: It’s a set of torsion springs that guide and press the chip card into the contact reader.
That sounds like an application situation. The way that applications are loaded in general in chain stores is, they get pushed down from their corporate host to the terminals in the stores to update applications.
If that particular store failed to get an upgrade and add the application, that could explain it.
That merchant may not have EMV implemented for that card, and it’s typically by card brand. These days,however, most chain merchants accept the four U.S. card brands (Visa, Mastercard, American Express and Discover).
Also, if the merchant has an old application and the card has a new application that no longer supports that old application because it’s so old, it may not work. But you usually won’t run into that at major chain stores.
The most common cause of that lately is a contactless card that is EMV chip card-only and the merchant doesn’t have contactless EMV enabled, but they do have magnetic stripe enabled.
So, the card reader detects a contactless card, but at that point, it doesn’t know that it’s a chip card. And sometimes it picks up that contactless signal from the card even if the consumer is trying to swipe or insert it.
It depends on where the contactless antenna is located on the terminal. If the card passes by the antenna on its way to be inserted, it may try to start a contactless transaction, but then can’t proceed because it doesn’t support chip card-only contactless.
There are so many different terminal manufacturers and terminal models that, on some models, there apparently is room within the slot for a card to be angled slightly, causing you to have to reinsert. And if you insert it the same way, it will fail again.
Whichever side of the card is leaning slightly as it is inserted, the error message will vary, depending on the angle. That’s how critical it is to get the card in straight.
If the device allows the card to be inserted slightly unevenly, you’ll come up with problems like that.
Tapping is probably the best way to use it. Usually there will be a target on the device that indicates where to tap.
They won’t ordinarily need to do that unless it’s a security issue or the application on the card has changed substantially. And sometimes they purposely don’t tell people why, especially if they’re updating the card because they found a security flaw in their application.
Suffice to say, issuers won’t do this unless they have to, because it costs a lot of money to reissue (approximately $2-$4 per EMV card, according to First Data).