Swiping your credit card is a thing of the past. Thursday October 1, 2015 was the deadline for all major credit card companies to switch over to the use of microchips. In the name of better security and stricter fraud protection, all credit cards need to have microchips. Also, merchants are required to process transactions with new card readers. Credit card fraud is a growing problem in the United States. According to Javelin, a company that studies consumer transactions, 31.8 million consumers had their credit information stolen in 2014. Credit card fraud can adversely impact your life in several ways. Credit card fraud can affect your credit score, thus affecting your ability to buy a house or a car. Talk about stress. We know that stress can negatively impact your physical and mental health, in the form of headaches, stomach ulcers, elevated blood pressure to name a few.
Banks are shifting the liability onto retailers
Retailers who have not upgraded their card readers will be liable for fraudulent credit card transactions if the card has a chip. If you still have a card with a magnetic stripe and you use it at a retailer that has a chip-enabled card reader, the bank or credit company will be liable for any fraud that occurs.
Despite the chip-enabled cards you are still vulnerable to fraud
You may already have received your new bank and credit cards with the new chip. If you did not, you should call your bank and credit card companies. Chip-enabled cards are expected to decrease fraud by 60%. Chip-enabled cards will not protect you from all types of fraud. You are still at risk for fraud if you shop online or if you give your card number over the phone.
Banks and credit companies may have different policies and rules regarding the new chip-enabled cards, thus you should call your respective banks and credit companies for information.
Click on this link from ABC News here for more information.