Moreover, all the cards, which have to be slotted into a reader, are more secure for consumers. Older card machines transfer all the information from the data strip to financial institutions and that can be pirated, newsok.com reports.
The risk is especially high with the advent of sophisticated skimming devices that have been illegally placed over card readers at gas stations in recent years. The EMV technology (short for Europay, MasterCard and Visa) converts the data into an individual security code unique to that transaction. The less data that is transmitted, the smaller the chance for theft.
According to MarketWatch, cited by the source, EMV penetration is just at 20% but will ramp up toward the end of 2015. The major credit card companies set the 1 October, 2015 goal of having the new readers in place. Still, they admit the change will likely take longer as merchants phase in the technology.
Nevertheless, the liability for in-person transactions will change with that date. If a merchant swipes a card that has an EMV chip, instead of inserting it into a reader, then the business is liable if it’s counterfeit.
On the other hand, Jonathan Sandmel, owner of Dotfoil computer sales and service, said there is very little in-person fraud from customers who walk in to make purchases at his Apple store. He has not even been told by his bank of the need to upgrade card technology. Most of the fraud attempts at his business are through the internet or with telephone purchases, and require a different layer of protection.
For walk-ins, “the biggest risk is people trying to bounce checks,” he said, and the store now uses a check reader that can instantly withdraw money from an account. Dotfoil also doesn’t do any business over the phone with credit cards, the source cites. As for in-store fraud with a credit card, he is confident that none has ever happened.
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