Skip to comments.New credit cards could mean serious hassles at checkout (for 10/1 deadline on who pays for fraud)
Posted on 09/30/2015 7:35:20 PM PDT by Vision Thing
Banks have been sending out new chip-enabled credit cards, and stores have been installing new machines that require you to dip the new cards rather than swipe them.
It's all aimed at keeping you safe from hackers.
new liability rules go into effect October 1 that shifts who pays for fraudulent charges. Banks used to cover any bogus transactions, but now the entity with less protection will have to cover the costs.
For instance, if a chip-enabled card is used in a store that hasn't upgraded its payment system, the retailer is on the hook for any fake swipes.
(Excerpt) Read more at money.cnn.com ...
The banks have been swallowing the costs of fraud, but now with the new chip-enabled cards and rules, the stores and vendors may end up paying for the fraud.
This should give the stores some incentive to prevent fraud.
Which is good for all of us.
I have a debit MasterCard.
Well its convenient and I don’t have to worry about monthly payments.
How does this work online? Or over the phone?
I agree. They need to upgrade. It may be costly but that is the price of doing business. Otherwise just take cash.
I was in a Trader Joe’s today that is still swiping, no chip read. Everyone else I’ve been to recently is doing a chip read, except Costco, and they basically have two-factor authentication with the membership card plus the credit card.
Excellent. Bank fees should soon be coming down.
Best news I’ve heard all week.
What if my card is stolen, and someone ‘dips’ it at a store? How is that good?
Did they send you a replacement card that is chip-enabled?
I think debit cards that use the old magnetic stripes can still be copied by the bad guys whereever you swipe the card.
Nothing to worry about when we have a punk ass ID Thief for president, that has access to just about everyone's bank info!
The fraud is not a significant drain on banks; it's just cost of doing business. The problem is that the fraud feeds the criminal industry of card theft, counterfeit, and other misuse. I'm not sure that the banks would have done anything without those massive breaches like at Target. Those incidents created enough pressure on banks to "do something," and so they did.
Wal-mart around here (Central Florida) is the only merchant with these new machines that I’ve seen.
They are a pain, they never work the first time and it usually screws me out of 2 additional minutes every time I swipe it. You wait long enough to get someone to check you out, this is a burden on ME. Not anymore.
Guess what, PAYING CASH NOW.
In Canada chip cards also use a pin.
Haven’t seen them in use here in CA yet.
I use PayPal, but almost on a daily basis, I get spam mail with a very realist looking PayPay format telling me my account will be limited or closed if I don’t update my info.
Online and by phone, these new cards work the same way as the old.
The new cards were designed mainly to prevent the bad guys from copying your card data from the magnetic stripe. The bad guys would then make a copy of the card, which can be used at gas-pump credit-card terminals and other places where a clerk doesn't verify the true owner of the card.
So these new cards will deter fraud from physical card copying, but it looks like they still keep us vulnerable via fraudulent online and phone transactions.
Walgreens is using it.
I have always viewed Credit Card and Identity theft the same way I looked at Pregnancy and Venereal Disease.
Abstinence works every time it is tried!
Cash is King.
The chip (when used) will stop some forms of fraud done at the point of sale, but doesn't protect the consumer from several other vulnerabilities.
Also, some ATM machines overseas that accept chip and pin cards do not accept these chip and sign cards... I ran into that in a casino in Costa Rica last month.
And think of the sanitation issues.
I know there are many banks that use "fingerprint ID"
But being the germophobe I am, I just can't get past thinking: "Wait, the last guy to use this might have just wiped his ass."
You’re going to get those phishing emails whether or not you use PayPal or even have an account.
Yes, I like how private industry has taken the lead in making these changes without any prompting by the federal government. It just seems to be in everyone’s best interest (except for the fraudsters).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.