Captain Rick : By now your MasterCard, Visa and other credit cards have the new EMV microchip. All U.S. merchants need to have the new chip readers installed and operational by October 1, 2015 or they face increased responsibility to cover losses if someone goes shopping with a stolen credit card.
EMV stands for Europay, MasterCard and Visa, the companies that created the standard in the mid-1990s. Its a years-in-the-making liability shift aimed at prodding American merchants into finally adopting a more secure payment technology that is ubiquitous in Europe and Canada but still rare in the United States. Starting next month, retailers that haven’t upgraded their payment systems to read EMV microchips — the small, metallic rectangles that are increasingly prevalent on the front of American charge cards — will bear the financial liability for some fraudulent charges. (Gas stations have an extra two years to make the switch for charges from their fuel pumps.)
How it works: The credit card is inserted into the bottom of the card reader and remains there until the transaction is finalized (instead of being swiped down its side). The chip on the card generates a unique code that is validated by the issuing bank. This makes the cards harder to copy than the magnetic strip.
The merchant hardware (up to $600 per terminal) and software ($Thousands) required is expensive. Walmart and Target are among the few companies already using the new technology. 27% of U.S. merchants will be ready by the deadline. The old card swipe readers will continue to work for consumers while the balance of merchants switch to using the new technology.
I experienced my first credit card chip transaction about a month ago at Walmart. I swiped my card as usual. The cashier said “you have to insert your card in the chip slot”. I asked “were is that?” The cashier replied “at the bottom”. I inserted my credit card in the slot at the bottom. It did not work because I inserted the wrong end of the card. Once I inserted the end with the chip face up, it worked, but I made the mistake of pulling it back out. The card needs to stay inserted during the entire transaction. Those standing in line, the cashier and I all had a good laugh. It was a learning experience for me. Another transaction a few days later was executed perfectly on the first try. I am a pro now. When it is time to pay, I ask “is your chip reader is working.” Most say “no not yet. It should be working by October 1.” In any case, I can conclude that this “old dog is not too old to learn a new trick”.
Interesting ATRIDIM NEWS JOURNAL Posts, Categories, Links and Stats are presented in Left Column