Six months ago, credit card companies expected the majority of retailers to have transitioned over from terminals that read the magnetic strips on cards to those that read the much more secure computer chips. Card holders were told they would be issued new chip cards that would be widely accepted and that magnetic strip readers would be phased out, but as March draws to a close, many find that this is not the case. Many retailers have not spent the money to upgrade their systems, and even those that have chip terminals in place do not use them.
This comes as a surprise to a number of experts, including Paula Rosenblum, an expert in retail technology. She is shocked that retailers have been so slow in moving to this more secure system, especially after large companies such as Home Depot, K-Mart, Target, and Staples have all been victims of security breaches. Rosenblum goes on to say that she, like many customers, is often told to swipe their card despite the fact that the company already has chip readers. Chip transactions take slightly longer, which may lead to the fear that it will hold up the line and make customers upset.
While this does leave consumers open to having their personal information stolen, Rosenblum does stress that they will not be liable for purchases made if their credit card information is used fraudulently as long as the customer reports it to the issuer as soon as possible.
If you want more credit, check out MoneyTips’ list of credit card offers.