Date: Jan 10, 2016
WATERTOWN, NY (WWNY) – If you have a credit card with the new chip in it, you’ve probably heard the sound telling you to take your card.
“That’s the chip card technology and its helping prevent fraud, because frauds a big issue,” Steve Ferency with Higher Standards NY Inc. said. “They figure by going to this technology its going to reduce fraud by 95 percent.”
In the last few months, Ferency has replaced credit card machines for hundreds of North Country mom and pop businesses. A few hundred dollars and it’s an easy switch – unplugging the old machine and plug in the new one.
Ferency replaced the card reader at Family Chiropractic Care in the town of Pamelia, an easy installation.
“Exchange the old one for the new. Took about 15 to 20 minutes,” Family Chiropractic Care owner Sam Vassallo said. “He got us connected, hooked up, business as usual.”
Back in October, stores without the chip readers took responsibility from credit card companies by taking the blame if a customer’s card is breached or hacked.
Big Stores like Wal Mart and Target have made the switch nationwide, and mom and pop stores are in the middle of switching over.
While the transition is as simple as plugging in a new machine for small businesses, its regional chains that are playing the waiting game.
For instance, if you’ve been to a Stewart’s Convenience store lately, the shops have installed the new machines with the chip readers. Though, you still have to swipe your card because the companies still can’t get the proper software. A spokesperson for Stewart’s said, “They’re ready and waiting.”
“They have to be programmed,” Ferency said. “They have to also be injected with the proper information so its much more information to ties with their point of sales systems. It’s a big amount of cash to do that where the small mom and pop for $400 they can get up and running with the new technology.”
Ferency said about half of his 600 or so customers have made the switch to the new machine,but businesses that are on the waiting list to update shouldn’t worry too much about fraud in the meantime.
“This isn’t going to be a thing that happens over night,” Ferency said. So many of the companies themselves, the processors don’t have the technology in place yet to be able to read those chips. So that’s all coming. So it’s going to be phased over 5 years before its fully phased in.”