At One Payment, we love keeping our readers up-to-date with the latest tidbits of news in the business world! Some consumers are frustrated at the slowness of credit card processing services, and this article will enlighten you on some of the reasons behind the delays!
Cause for Delay
Once the October 1, 2015 deadline for merchants to upgrade their card terminals passed, consumers assumed everyone was on board with chip cards. However, as of December 2016, a mere one third of US merchants accept chip cards. While it seems like the major retailers are on board, the fact that two thirds of merchants have not upgraded is indicative of a larger problem.
The Perks of Chip Cards
Chip cards were highly advertised as being more secure for consumers and merchants alike. However, increasing numbers of consumers are becoming more frustrated at the extra time it takes to run a transaction with a chip card as opposed to the old magnetic strip. What consumers fail to understand is that the extra time is due to enhanced security measures, but unfortunately, when there’s a long line of people trying to check out at the same time, patience gives way to common sense.
Why Are Merchants Refusing to Upgrade?
While most people would think that the October 2015 deadline to upgrade was mandated, it was actually more of an incentive. In other words, after October 1, any merchant who had not upgraded was liable for any fraudulent transactions, whereas before, their processing company would have handled the fraudulent transactions.
However, with the onslaught of the busy holiday season, merchants who had upgraded their equipment reverted back to swiping credit cards so that they didn’t have long lines and upset customers. Not only are these merchants irresponsible by reverting back to outdated equipment, but they have no regard for their customers’ personal safety.
Drawing out the Process
While it seemed as if all merchants would be chip reader compatible within a year of the upgrade, realistically, it will be at least three years before everyone is compliant. Earlier this month, Visa and MasterCard announced that they were giving gas station merchants until October 2020 to upgrade their card terminals.
While as a consumer, it’s beyond frustrating to use a chip card for only some transactions, rest assured that eventually, all merchants will be using compliant equipment!