Design World

  • Home
  • Technologies
    • 3D CAD
    • Electronics • electrical
    • Fastening & Joining
    • Factory automation
    • Linear Motion
    • Motion Control
    • Test & Measurement
    • Sensors
    • Fluid power
  • Learn
    • Ebooks / Tech Tips
    • Engineering Week
    • Future of Design Engineering
    • MC² Motion Control Classrooms
    • Podcasts
    • Videos
    • Webinars
  • LEAP AWARDS
  • Leadership
    • 2022 Voting
    • 2021 Winners
  • Design Guide Library
  • Resources
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Women in Engineering
  • Supplier Listings

Chip Cards? Small Business Owners Unaware of Planned Changes

By Joyce M. Rosenberg, AP Business Writer | August 6, 2015

Share

A majority of small-businesses owners are unaware of an impending shift that could leave them liable for fraud committed with a new generation of chip-imbedded credit cards.

That’s the finding of a survey by Wells Fargo & Co., which asked 600 small-business owners about the Oct. 1 deadline to get card readers and software to handle the new credit cards. Retailers and other businesses without equipment to handle the cards could be liable starting Oct. 1 if a customer commits fraud with a chip card.

But in the Wells Fargo survey, only 49 percent of owners of businesses that use card readers for transactions said they were aware of the deadline.

The U.S. credit card industry is switching to chip cards because it’s harder for thieves to counterfeit them than it is to make fake magnetic-stripe cards. Chip cards have been in use in Europe for more than a decade, and security experts say there is more fraud in the U.S. than other countries because of the prevalence of magnetic stripe cards. Card issuers are still in the process of sending chip cards to their customers. The goal is for all magnetic stripe cards to eventually be replaced.

Most small business owners haven’t made the switch to readers that can process chip-card transactions. Only 31 percent of those who use card readers said they have the new equipment, and only 29 percent said they plan to get it by Oct. 1.

Thirty-four percent plan to upgrade their equipment at some point in the future, and 21 percent said they don’t plan to get the new readers.

Forty-six percent of owners who don’t plan to get new readers by the deadline said they don’t want to pay the costs for buying and installing the equipment and software, which can run into thousands of dollars. And 41 percent said they’re not concerned about being liable if fraud is committed.

Many large retailers have already swapped out their card reading systems. Some of the new systems are asking shoppers to dip the cards into a slot on the readers rather than swipe them.

The Wells Fargo survey was conducted in early July.


Filed Under: Industry regulations

 

Related Articles Read More >

ids-industrial-camera-manufacturer.sustainability-3
IDS focuses on sustainability in shipping
Part 5: Motion control + MQTT, OPC-UA, and other protocols for cloud services
Facebook CEO Zuckerberg Calls for More Outside Regulation
Musk’s Boring Company Calls it Quits on LA Tunnel, Instead Focuses on Hyperloop

DESIGN GUIDE LIBRARY

“motion

Enews Sign Up

Motion Control Classroom

Design World Digital Edition

cover

Browse the most current issue of Design World and back issues in an easy to use high quality format. Clip, share and download with the leading design engineering magazine today.

EDABoard the Forum for Electronics

Top global problem solving EE forum covering Microcontrollers, DSP, Networking, Analog and Digital Design, RF, Power Electronics, PCB Routing and much more

EDABoard: Forum for electronics

Sponsored Content

  • Global supply needs drive increased manufacturing footprint development
  • How to Increase Rotational Capacity for a Retaining Ring
  • Cordis high resolution electronic proportional pressure controls
  • WAGO’s custom designed interface wiring system making industrial applications easier
  • 10 Reasons to Specify Valve Manifolds
  • Case study: How a 3D-printed tool saved thousands of hours and dollars

Design World Podcasts

May 17, 2022
Another view on additive and the aerospace industry
See More >
Engineering Exchange

The Engineering Exchange is a global educational networking community for engineers.

Connect, share, and learn today »

Design World
  • Advertising
  • About us
  • Contact
  • Manage your Design World Subscription
  • Subscribe
  • Design World Digital Network
  • Engineering White Papers
  • LEAP AWARDS

Copyright © 2022 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Design World

  • Home
  • Technologies
    • 3D CAD
    • Electronics • electrical
    • Fastening & Joining
    • Factory automation
    • Linear Motion
    • Motion Control
    • Test & Measurement
    • Sensors
    • Fluid power
  • Learn
    • Ebooks / Tech Tips
    • Engineering Week
    • Future of Design Engineering
    • MC² Motion Control Classrooms
    • Podcasts
    • Videos
    • Webinars
  • LEAP AWARDS
  • Leadership
    • 2022 Voting
    • 2021 Winners
  • Design Guide Library
  • Resources
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Women in Engineering
  • Supplier Listings