Deadline for new chip credit cards arrives; many businesses don’t have new equipment


New chip credit card reader

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DENVER -- After talking about them and seeing them for months, Thursday marks the first big deadline for the new EMV computer chip credit cards.

"(Thursday), if I walk into your store and I have a chip card, and you don't have a chip reader, and I dispute the charge, for whatever reason, you automatically lose," said Brian Cook, CEO of Perfect Processing.

Despite that fact, the majority of merchants don’t have the proper equipment. The latest estimates indicate only 3 in 10 merchants have the chip-reading technology.

Many businesses have reported the high cost of the new equipment as the reason for the delay.

RELATED: New EMV chip card changes on the way - what it means for you

"They're either afraid of the cost or they are afraid of the technology,” Cook said. "Our response is, you can't afford not to."

Kristi Walstra, who owns Starlet on South Broadway, said she and other business owners with Square credit card processing can’t get the technology in time.

"I ordered the Square chip reader a while ago and I keep getting emails from them saying that they don't have it available yet," Walstra said.

On Wednesday, Square sent an email to its businesses saying it would not be held liable for the issue until it receives the new chip card readers.

Many consumers are also waiting on their cards. Only 6 in 10 cardholders have the new cards and some people do not have all of their new cards.

Though the businesses assume most of the risk, cardholders are better protected when using chip cards. Instead of swiping the cards, they are inserted into a machine and never leave your sight. The chip then encrypts each purchase, helping prevent fraud and identity theft.

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