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.
ping
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.
And I would also like to add that 99% of retailers never look at your credit card that needs no signature at point of purchase.