Visa’s new update to credit card chip readers will reduce the transaction time to less than two seconds, the company has announced. This update comes as a response to one of the largest complaints about the EMV chip technology, namely that customers must wait until all of their items have been rung up before they can insert the chip card. Once inserted into the reader, it takes several seconds for the transaction to process. Magnetic strips have neither of these issues; customers can swipe before the cashier has finished ringing up items, and there is very little processing time.
With the update, customers can insert their credit card before the transaction is complete, and the overall processing time will be much shorter. Visa hopes that by addressing this complaint, more merchants will make the change to EMV chip readers. The company noted that as of this March, only 20 percent of retailers in the country are currently using chip readers. Some have installed the readers, but do not use them.
Those who have not made the change to EMV technology will now find themselves responsible for the cost of any fraudulent transactions that occur if the card is an EMV card. As of October 2015, in the event of credit card fraud, it’s the party – either the merchant or the card issuer – who is not using EMV technology who is held financially responsible.
The update to the chip readers is a software-only update, meaning retailers will not have to purchase any new hardware.
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