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?
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.
In Canada chip cards also use a pin.
Haven’t seen them in use here in CA yet.
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.
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.
Obama , “it will impact minorities”
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.
“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.
My Walmart has been using these machines for over six months with no problem.