Credit Card Chip Rule: Chip Rule In Effect
Published: October 1, 2015
Credit Card Chip Rule: Chip Rule In Effect, Businesses and anyone who owns a credit card will be affected by new rules that take effect in a couple of hours.
It all has to do with new chip-embedded cards.
You may have noticed the shiny new feature on your credit card. It’s not there for looks. The new chip is there to fight credit card fraud.
“I know a lot of merchants sometime forget to ask for ID and that’s where a lot of identity theft comes from,” said Kenani Sasao of ButiGroove.
Sasao is one of many local retailers who made the switch to new credit card readers.
So what’s new about these new machines? If you have the old cards that don’t have a chip, you can still swipe your card.
But if you do have a chip, you have the option of inserting your card into a special reader.
“I believe for security overall it will help the businesses and the people,” Sasao said.
So why is it important for businesses to make the switch to these new credit card readers?
“If there is any fraud and they did not accept the chip card, they assume responsibility for the fraud. So Oct. 1 is the deadline for merchants,” said Ed Pei, Hawaii Bankers Association.
We first told you about the changes last month, but there’s still some confusion. We received a lot of questions about the new credit card rules, like will old credit cards work without the new chip? Is it still safe to use a store’s credit card machine if it hasn’t been updated yet?
“The cardholders are really not impacted either way whether there is a chip on their card or not,” Pei said. “They are not responsible for any fraud losses if they report it to their bank in a timely fashion.”
So if you need to use your card Thursday, know that some places will give you the option of swiping your card the old way or using the new way as well.
“Again the consumer should not have any fear about using their cards come Oct. 1,” Pei said. “The sky is not going to fall and nothing really changes for them.”
The bottom line: The new credit card chip is an added safety feature, but if you don’t have it, you’re still okay.
Experts say you should continue to check your bank statements regularly, and if you see any suspicious activity, report it right away.
Gas stations will also have to make changes to their credit card readers, but they have until 2017 to do that.
If you like to shop online, experts tell us you should be extra careful. The chip-embedded credit card will not stop hackers from stealing your online payment information.
In fact, experts say online fraud will increase.
The best thing to do is to shop on secure websites and check your statements regularly.
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