Get Started: Chip card fraud liability deadline days away - KSWO 7News | Breaking News, Weather and Sports

Get Started: Chip card fraud liability deadline days away

By JOYCE M. ROSENBERG
AP Business Writer

APPROACHING DEADLINE

Starting Thursday, businesses that accept credit cards must be prepared to handle transactions with new chip-embedded cards or find themselves paying the bill in the event of fraud.

The credit card industry set Oct. 1 as the day when liability for fraud committed with the new cards will shift to retailers and other businesses if they don't have equipment to process chip card transactions. The chips in the cards are harder to counterfeit than the magnetic stripes on millions of cards, but they require new card readers and software to process transactions. If a counterfeit card is used in a transaction and a business doesn't have the new equipment, the company will be liable for the financial losses it suffers.

However, little is expected to change on Thursday at many small businesses. A number of banks and other card issuers still haven't sent the new cards to their customers, who will continue to use their magnetic stripe cards. It's expected that millions of the older cards will still be in use going into 2016. And at least for the time being, it's not expected that thieves will have figured out how to copy the information on the chips.

Although many national retailers have upgraded their equipment, many small businesses haven't. A Wells Fargo & Co. survey taken during the summer showed that only about half of small business owners were aware of Oct. 1 deadline. Only about a third had the new equipment and less than a third said they planned to get it by the deadline. Over time, many companies may feel more pressure to update their equipment.

The simplest card readers are expected to cost at least $100, and the most basic software starts at several hundred dollars. Some small businesses can get their readers and software for free from the companies that process their credit card transactions. An additional cost for many companies will be an information technology consultant to get the new systems up and running.

Businesses like restaurants and stores that link their payment systems with their order and inventory tracking systems are likely to have the biggest expense. So are companies that have multiple locations.

_____

Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Local NewsNewsMore>>

  • Oklahoma restaurant shooting victims recovering

    Oklahoma restaurant shooting victims recovering

    Saturday, May 26 2018 4:03 AM EDT2018-05-26 08:03:40 GMT
    Saturday, May 26 2018 11:29 PM EDT2018-05-27 03:29:23 GMT
    (Sarah Phipps/The Oklahoman via AP). Police officers stand at the scene of a shooting on the east side of Lake Hefner in Oklahoma City, Thursday, May 24, 2018. A man armed with a pistol walked into Louie’s On The Lake restaurant at the dinner hour and ...(Sarah Phipps/The Oklahoman via AP). Police officers stand at the scene of a shooting on the east side of Lake Hefner in Oklahoma City, Thursday, May 24, 2018. A man armed with a pistol walked into Louie’s On The Lake restaurant at the dinner hour and ...
    Authorities say a Facebook page in which a man claims his television is possessed by the devil belongs to the man suspected of shooting three people at an Oklahoma City restaurant before being killed by two armed...
    Authorities say a Facebook page in which a man claims his television is possessed by the devil belongs to the man suspected of shooting three people at an Oklahoma City restaurant before being killed by two armed bystanders.
  • The Latest: Rep: "Hero teacher" released from hospital

    The Latest: Rep: "Hero teacher" released from hospital

    Saturday, May 26 2018 10:46 AM EDT2018-05-26 14:46:33 GMT
    Saturday, May 26 2018 11:28 PM EDT2018-05-27 03:28:47 GMT
    (Robert Scheer/The Indianapolis Star via AP). Empty school buses leave after a shooting at Noblesville West Middle School in Noblesville, Ind., on Friday, May 25, 2018. A male student opened fire at the suburban Indianapolis school wounding another stu...(Robert Scheer/The Indianapolis Star via AP). Empty school buses leave after a shooting at Noblesville West Middle School in Noblesville, Ind., on Friday, May 25, 2018. A male student opened fire at the suburban Indianapolis school wounding another stu...

    The family of a student wounded during a school shooting in Indiana says she is in critical but stable condition.

    The family of a student wounded during a school shooting in Indiana says she is in critical but stable condition.

  • Amid anti-immigrant sentiment, some Spanish speakers wary

    Amid anti-immigrant sentiment, some Spanish speakers wary

    Saturday, May 26 2018 2:14 PM EDT2018-05-26 18:14:01 GMT
    Saturday, May 26 2018 11:28 PM EDT2018-05-27 03:28:25 GMT
    (AP Photo/Chris Carlson). Lilly Mucarsel, a native of Ecuador, poses for a picture in her office Friday, May 25, 2018, in Tustin, Calif. Mucarsel, 62, of Southern California finds herself reverting to English when she attends a baseball game or goes to...(AP Photo/Chris Carlson). Lilly Mucarsel, a native of Ecuador, poses for a picture in her office Friday, May 25, 2018, in Tustin, Calif. Mucarsel, 62, of Southern California finds herself reverting to English when she attends a baseball game or goes to...

    The Trump administration's harsh rhetoric and tougher policies toward immigrants have made some Spanish speakers self-conscious about speaking other languages in public.

    The Trump administration's harsh rhetoric and tougher policies toward immigrants have made some Spanish speakers self-conscious about speaking other languages in public.

Powered by Frankly