Retailers Continue To Put Off Updating Card Readers

Despite persistent security breaches, many retailers still have not switched to the EMV chip system

Shaun Plum
MoneyTips Contributor

Borrowing Credit Cards

Retailers Continue To Put Off Updating Card Readers
March 29, 2016

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.

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Carla | 03.29.16 @ 15:23
I am really shocked that retailers are not more up to date with these more secure apps. It makes me wary of even using my card now.
Steffanie | 03.29.16 @ 15:24
I knew things were supposed to be changing, and I have been surprised it hasn't happened yet. Guess I'm nt the only one.
Erin | 03.29.16 @ 15:24
I wish they would all convert to it already. It's annoying to have to figure out as a consumer whether I still have to swipe my card or insert it. Inserting it does take longer and is annoying when it beeps, but some consistency would be nice.
Sarah | 03.29.16 @ 15:25
As someone who used to work retail in a managerial role, I am not in the least surprised. It's a huge cost to them with very little return!
Shannon | 03.29.16 @ 15:25
With as many times as I have had to get a new card due t9 a breach I would think they would get on the ball with it.
Elaine | 03.29.16 @ 15:28
I for one am glad to hear some are dragging there feet on this update. Too many major changes scare me.
Nancy | 03.29.16 @ 15:29
The consumer always has the choice of whether to frequent businesses that don't convert. As a matter of safety, I think that is a valid choice.
Ron | 03.29.16 @ 17:10
My local Panera restaurant has signs on all the card readers that the chip part of the machine is not in use. A few other retail places I patronize also have similar signage. Costs to the retailer dictate much and consumers aren't all that interested in security of their cards and PII until they get hit individually or more so en masse.
lydiapawsey | 04.14.16 @ 14:46
Are any of you business owners? The banking industry is ripping the business owners off. First of all the banks that say they are giving you cash back on your purchases are charging the business owner and giving it to you. Every time you swipe your card the business owner pays a fee. Starting at .65 cents and up! Then they charge the business owner monthly fees, data fees, non-qual fees, reward fees, and so on... I have a friend in banking and she says the fees on the new machines is outrageous. I just hooked mine up the 1st of this month and called my merchant services and asked what the fee per swipe on Debit vs Credit. Waited 10 min on the line and she said she could not find that info. So I logged into my merchant site to get it and could not find it. So I went to my bank and they said they would see what they could find out and get back to me. That was 4 days ago. I understand it will be 3.9% per swipe or more from my friend in banking. So each and every one of you who get a paycheck , if you were charged by your employer 3.9% of your check for processing your would that set with you.
$commenter.renderDisplayableName() | 12.03.20 @ 11:17