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3 things to know about the new chip credit cards

Posted at 6:56 AM, Oct 01, 2015
and last updated 2015-10-01 06:56:10-04

At Koch's Sporting Goods in Cincinnati, Ohio, they're ready for the chip revolution.

"Going well so far, they just work a little slow," said manager Kris Cook.

As of October 1st, 2015, merchants are supposed to stop swiping, and use the new more secure chip reading machines.

But many other stores and millions of consumers are not ready.

Cards Have Yet to Show Up
    
A lot of people are wondering: What if you don't have one of the new chip credit or debit cards yet? Can you still use your older card in one of these newer machines?

William Mense of Hamilton said "only one of my cards has the chip. The other bank has not issued me the new card yet."
    
At an arts luncheon at the Fitton Art Center in Hamilton, many patrons were still confused about what they are expected to do with their new cards.

Katie Conley said "two of my cards have the chip in them, but everyone has me swipe the cards, I had not even heard of this.  I was wondering why the chip was on my card."

Will Cut Down on Fraud

The new cards -- called EMV cards -- are supposed to cut down on fraud, as they are almost impossible to duplicate.

Card fraud has dropped dramatically in Europe, where they have been in use for 5 years.

But a survey by CreditCards.com finds:

  • 50% percent of people in the US have not yet received new cards.
  • 75 %of small merchants are not fully set up yet to use them.

"Even though they are set up to accept the chip, they were not ready to scan mine that way yet," one woman said.

So we are on your side with three things to know to cut through the confusion. You should know that:

  • Your old swipe cards will still work for the foreseeable future.
  • There is no penalty for not using a chip card.
  • It could be two years before the system is fully running, so there is no need to panic.

The only penalty will fall on merchants: Stores will now be liable for fraud if they don't switch to the new card readers.

There is no penalty for consumers.  But if your card has a chip, expect to be told you now have to use it.

As always, don't waste your money.

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