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 ...
I don’t understand something about the new system. I have a chip enabled card now, and the other day at Target, it required me to insert it into the chip reader. Then, it approved the transaction without me entering a PIN number. It was only $11, and I’m used to a lot of places not requiring a SIGNATURE if a transaction is below $25, but it seems that with chip/PIN technology, they should require the PIN code any time the card is used. Instead, they seem to be accepting that your card could be used fraudulently $25 at at time, when they have the technology in place to prevent it completely.
I’m still seeing a lot of swiping, but now that the new liability rules go into effect tomorrow, perhaps I’ll be seeing more ‘dipping’ instead.
Hopefully, but the banks seem to be addicted to those fees.
I was recently in Canada and almost everyone was set up for chip cards, but I was never asked for a PIN.
Europe has been doing that for a while. I expect it here in the future.
Lots of gullible people. I feel sorry for the ones reeled in. I have no sympathy for people who do this and wish they’d get severe sentences when, if caught.
You're still in a world of hurt unless you discover the loss and close down the credit-card account before the thieves can dip your card.
The new cards mainly prevent thiefs from making copies of your card, which was a vulnerability with the old cards, where thieves would 'read' the old magnetic stripe for your card data.
Ouch. That’s almost as slow as making a cash transaction.
Do you use disinfectant spray on your cash? Especially the paper currency you put in your wallet that was previously handled by that "last guy" who had just "wiped his ass."
Obama , “it will impact minorities”
I was in BC last year and used a pin with my chip card twice.
Either way, I’m all for better security. Too easy to spoof the mag strips these days.
YEP...I asked the Walmart person why they didn’t need a pin number or ID? She didn’t know....so, if ANYONE gets my card they can use it at will!!!!
My cousin recommends this...WRITE “Please ask for ID” on the back of all your charge cards.
Nonsense. I own a small toy store and I can assure you that the banks don’t swallow any of the costs of fraud, it’s always the store that does. Half the time the customer just doesn’t remember the charge and, instead of asking the store about it (I don’t remember this, what did I buy?) they just automatically file a dispute with the bank. The bank takes the money from me and gives it back to the customer, dings me with a “chargeback fee” of $20 and that’s it. The bank doesn’t lose a penny.
Maybe it’s different for someone like Amazon or Target with lots of lawyers, but for small businesses it is we who swallow the cost of fraud.
It isn’t to help with fraud. It is to help the blood-sucking banks, who pay off our fearless leaders.
Your PIN number is still required. I believe the chip cards is to stop the criminals that put stripe readers over the real readers.
“New credit cards could mean serious hassles at checkout”
Cash just keeps getting more and more convenient.
Was on trip to Germany last year and never had credit card out of possession and never left country, yet there were 2K Euros charged at jewelry store in France. Credit card company ate the loss, not sure how a chip embedded card would prevent that type of fraudulent use.
Yikes! Thanks for letting us know.
I am only a consumer and not a busineess owner, so I haven’t seen how the entire process works.
When I disputed a fradulent charge, I just dumped it into the hands of the bank. They credited out the fradulent charge. And I thought the bank got stuck with the costs.
I had no idea the banks can make the stores/vendors pay for the fraud. And make money by charging the “chargeback fee.”
After reading fluffy's reply #34, I fear this may be the case. It turns out the banks don't swallow all the costs, and now that the new rules are in place, the stores and vendors who have been paying may now be paying even more.
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.