Retail businesses that have point of sale terminals were required to upgrade their terminals to accept the new chip credit cards as of October 1, 2015.
The “chip” is a microchip embedded in the card meant to reduce fraud. It is already the standard in Canada and in many European countries. The technology adds a layer of security for consumers because it is more difficult to counterfeit than the magnetic strip of old.
Retailers, however, will bear the risk of fraudulent transactions if they have not upgraded their terminals. This marks a shift in liability from issuers to the businesses.
Although many businesses may not have upgraded their terminals by October 1, to protect themselves against risk of fraudulent activity, business owners would do well to upgrade sooner rather than later.