BIRMINGHAM, Ala. – Beginning October 1, retailers are taking steps at the checkout counter to better protect them and their customers from credit card fraud.
According to Forbes, by the end of 2015, 70 percent of U.S. credit cards and 41 percent of U.S. debit cards will have security chips. Retailers have already begun to introduce a new technology for security chips in credit cards, called “EMV” for Europay, MasterCard and Visa. The chip technology allows the information on the card to be more secure than when using a magnetic strip reader.
The Alabama Retail Association says that while the implementation of these chips is costly, if banks and retailers work together, then security will be raised for their companies and consumers alike.
“This upgrade is a costly change for retailers as they work to protect themselves and their customers against fraud,” said Rick Brown, president of the Alabama Retail Association. “That investment would be better if banks would also invest in the latest and most secure technology.”
Retailers are not required by law to provide the chip technology by October 1st, but could be held liable for fraud if they don’t.
The addition of the PIN numbers on these new chip cards would ensure the upmost security and reduce fraud. However, although retailers are willing to add the card readers to their checkout lines, the banks are not currently issuing the new PIN numbers that go along with these cards.
So come Oct. 1, the main difference that consumers will see in their checkout experience is simply technical. Instead of scanning your card through a magnetic strip reader, you will ‘dip’ or tap the card to the card reader.
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