Although four-dozen national and regional retailers have installed checkout terminals with slots to read credit cards with embedded computer chips, three-quarters of them haven’t enabled the devices chainwide, according to a survey by ConsumerWorld.org.
Credit card issuers set an Oct. 1 deadline for stores to begin accepting the cards, which help reduce credit card fraud.
While the rules are different among credit card brands, usually, if a store doesn’t use the new, more secure system when a chipped-card is offered by a consumer, it will be financially liability for fraud losses. Before, card issuers were responsible.
To use a chip card, shoppers insert or "dip" their credit card into a slot in the retailer's checkout card terminal, which authorizes the purchase. Chipped cards help prevent the use of counterfeit credit cards by transmitting a unique code for each transaction.