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 new chip-cards only prevent the bad guys from using strip-readers to steal your card data. The new cards have no strips, so there’s no way for the bad guys to read the strip.
I have no idea how the bad guys were able to use your card data to make the 2K Euros charge on your card.
I’m guessing the store is willing to swallow the eventual costs for any fraudulent transaction under $25, no matter if the card has a chip or magenetic strip.
Most places I shop have the customer swipe their own card, and the checker never sees the card. So, writing that on the card isn't going to slow a thief down at all since he'll simply use it in places where the customer swipes it.
Do you get any form of cashback?
My Walmart has been using these machines for over six months with no problem.
I haven’t had a clerk ask to see my credit card in years, if ever. So writing “ask for ID” on the back would be a waste of time.
We process credit cards on-line for patients to pay doctor’s co-pay, balance and fee for service. The information is keyed in on a computer terminal based on written authorization from the patient, so the docs don’t have to pay for upgraded equipment or have any liability. Approval/ denial from the carrier is instantaneous. Works much better for them. Of course the docs all know their patients so that is a benefit and the incidence of someone using a fraudulent card is almost nil versus a retail establishment where the fraud problem is rampant.
Someone suggested that the thieves have scanning devices that capture the vital information, even if still in your wallet. Sounds pretty sophisticated, but criminals always find a way.
That’s why Visa/MC/Disc/Amex require that you keep your card receipts for 18 months. The value is in the signature - if someone claims fraud you can dispute.
I just saw this on the news tonight...so far I haven’t seen any new machines at all.
“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.”
That is correct. We have had our credit card information stolen 3 times in the past year. The last one was one of those chip embedded cards. We have special wallets that we use that are supposed to block anyone from being able to scan the card while it is in the wallet. Most stores that we do business with do not have the new machines for these cards.
I have a feeling that it was online purchases that were vunerable. I do most of my shopping online.
VISA has been great about catching these fraud purchases right away. What they did first in every case was to try and use the number for a very small purchase under $10. Then if they are successful they go for something bigger.
I wish I knew of a more secure way to shop online.
Like at the airport where lots are using their phones to show their boarding pass?
I’ve seen guys using the urinal while still talking on the phone. Wash hands?
RE: Did they send you a replacement card that is chip-enabled?
Yes, they did send me a new card with the embedded chip.
In my case (maybe I didn’t read the fine print) they (Visa) just cutoff my old mag stripe card. Tried to use the old card twice at the gas pump but it was rejected. Called Visa and they enabled that one transaction allowing me to gas my car so I could get home. I gave them an earful, too.
I’m known as a “dead beat” in the credit card world because I NEVER carry a balance. The bill comes in, it’s paid in full.
Eventually you will be required to have a chipped card reader at your home. If you don’t you’ll be checking some EULA box that informs you all purchases with the credit card your about to use from that date forward are your responsibility to pay whether its a fraudulent purchase or not. Otherwise they won’t do the order. They’re cheap, BTW.
My understanding (from my banker) is the primary intention for the implementation of chip technology at retail point of sale is to encourage retailers to check the customers ID for a match with the card. This will reduce fraud from stolen or duplicated cards.
When the chip is read and verified at a POS terminal, which seems to take on the order of 15 seconds, the only data the store retains is a transaction code. The retailer will retain your receipt and a transaction code, but they will not know who the card holder was unless you use a loyalty card in the store or scan your receipt into a price compare app.
It is all BS.
When you can make a 100 dollar purchase at wal-Mart with out a signature being required then the credit card companies are not very worried about fraud.
This is just another step to bring us all into the chipped world of the beast.
Needless to say that Walmart has the chipped readers for those who have the cards. I was behind someone a while back and it took 10 minutes to get the chipped card to work. Meanwhile everyone in the line had to wait.
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