If your terminal is unable to read the chip on a customer's card, the customer can swipe their card instead. This is known as a fallback transaction, and the card issuer assumes any liability for fraud, etc.
Note that this is only true if the failure is due to the chip itself, not the terminal! If you have concerns that your chip reader may be malfunctioning, call us right away at 408-295-8360 so we can investigate.
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