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Get ready for the chip

New fraud-resistant credit cards will become the standard this fall
By Pamela Thompson
Published: January 14, 2015
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Credit card fraud is growing. Retailers are accustomed to credit card issuers bearing the responsibility for any fraudulent activity. But a new standard governing all credit card transactions in the U.S. will take effect this fall.
The “EMV” standard will require credit card companies to stop relying on the magnetic-stripe cards that are common today and move toward cards with embedded chips that will offer more secure credit card transactions. EMV, named after its originators—Europay, MasterCard and Visa—is a credit card technology that mitigates fraud. Retailers who fail to adopt the new technology by October will have to bear the liability for fraud-related loss. Retailers who use a traditional magnetic swipe-only terminal to process a chip card after September will be responsible for the cost of fraud-related chargebacks if someone uses a stolen or lost credit card.
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