In October 2015, credit card companies released EMV chip-enabled cards, designed to reduce the amount of identity and credit card thefts. Despite their best efforts, though, the industry has faced several issues over the past year in implementing the new system. Many retailers still do not have chip-enabled readers activated, and some card issuers have yet to send chip-and-PIN credit cards to consumers.
The new system has come under fire for several reasons. Consumers have complained about the length of time it takes for the EMV card to authenticate, leaving them standing in the checkout line for longer. Retailers have had issues getting their chip readers approved and activated. Many have had the hardware installed for most of the year, but until it is approved and activated by a card issuer, they cannot use it.
Even with the new readers, some are skeptical about the protection that the system will provide. National Retail Federation General Counsel and Senior VP Mallory Duncan has voiced the frustration that many feel. Calling the switch-over a challenge, Duncan said that retailers neither wanted the change nor do they feel that it will provide the protection stores want for their customers. Cost is another issue, with retailers forced to pay for expensive new chip readers or shoulder the cost of any fraudulent charges.
Many retailers have also spoken out about concerns over the holiday season, especially stores that have not yet made the switch to the new system.
If you want more credit, check out MoneyTips' list of credit card offers.