Until this past week, liability for credit card fraud was placed exclusively on the issuers’ shoulders (don’t worry, they weren’t hurting), but now the liability will be shifted onto retailers who neglect to use a chip reader on a chip-enabled card. Old cards hold the payment data on the magnetic stripe on the back of cards, which is easy for fraudsters to steal and put on fake cards.
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In order to make the cards totally protected, the group believes that using a PIN along with the card owner’s signature is a more effective, though more cumbersome way, to prevent fraud. The bank is the fifth-biggest retail bank in the Pittsburgh area with 59 branches.
Banks have issued millions of new credit cards to their customers with a difference: a small rectangular gold-colored electronic chip.
If you don’t have an EMV card, contact your credit card issuer to find out when you can expect one. However, if a store does accept chip cards for purchases, you should use that option every time because it’s more secure. It warned consumers and merchants to use PINs over signatures whenever possible.
Apple Valley-based Wings Financial Credit Union has been issuing chip cards since 2012, partly due to its historic role as a banking institution for Northwest Airlines employees who traveled overseas .
Marcia Roepke of St. Paul said she discovered disconnected chip readers at Trader Joe’s and Ikea. You wave your card past an NFC reader, or insert it into one and your money is transferred using radio wave technology from your card to the retailer.
October 1 was the deadline for merchants to adopt chip-enabled card readers or assume liability for fraudulant purchases, but many Inland merchants are still using magnetic swipe devices. More significantly, the Federal Bureau of Investigation is officially endorsing the chip and PIN authentication standard. Additionally, a fair amount of attention was paid to the potential migration of fraud from in-store to online transactions, given that chip without PIN does not protect against that type of fraud.
“We are rolling out now and will continue to do so over the next several months”, spokesman Eddie Baeb said. “One of the women at the cashier checkout explained to me it never works properly and it’s better to swipe the card’s magnetic stripe”.
The bank studied consumer research that showed growing concern with security and relative ease of adoption in other countries, he said. The machine will then provide a temporary validation code before asking for the consumer to sign or enter their PIN. In comparison, Visa had $631 billion in total transaction volume in the U.S.in the same quarter past year . He can be reached at 412-320-7854.
Now, it’s the American customers trying to make sense of the different procedure.
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But, based on how numerous participants met that deadline, it looks like a lot of them were unaware of it or ignored it. Estimates last week of the percentage of merchants that lack the new payment terminals ranged from 50 percent to as high as 75 percent.
