NASHVILLE, Tenn. (by Sabrina Hall)– There are big changes coming to the U.S. involving your credit card. You should be getting new ones in the mail that have a computer chip to protect you. Businesses are scrambling to get their technology up to date by October or they could be held liable.
“My Discover card, they just sent it,” said Lynda Houston of Hickman County, Tenn. Houston’s new card has the computer chip.
“That makes them very difficult and very expensive to counterfeit,” said David Gilbert of Heartland Payment Systems.
The chip will help protect Houston against fraud but will businesses know what to do with it?
“All the stores don’t take the chip yet because they haven’t changed over for the chip,” said Houston.
In October, businesses must switch over to this new technology or they will be held liable if someone uses a stolen credit card.
“It’s a big deal and a significant investment, yes,” said Gilbert.
Right now, most businesses have a swipe system but the credit card companies have decided that the chip is a better way to protect the consumer. The chip’s been used in Europe for more than a decade. So, now in the US, businesses have a choice whether to use the swipe system or the chip system but it might cost them if they don’t switch over.
“Today, if a card is stolen and someone uses it to buy a dishwasher, or whatever, that charge is basically eaten by the card company,” said Gilbert.
Now, businesses take on the risk if they decide not to upgrade. Big box stores like Target and Walmart have already switched over. Only time will tell, how many mom and pop stores make the change to protect consumers and themselves.
If your credit card company doesn’t issue you a new card with a chip come October, then it will be held responsible if your information is stolen.
Source: fox17
Come October, Businesses take-on Risk of Credit Card Fraud
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