Deadline For New Credit Card Machines Has Come And Gone

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COLLEYVILLE (CBS11) - Four months before a national deadline for businesses to accept new chip-based credit cards, Foreman's in Colleyville set up two new machines. On the deadline date of October 1st though, the oldest business in town, still can't get the newest payment option to work.

Some surveys show as many as two-third of businesses nationwide still aren't able to process the new cards, which are still making their way to consumers.

The chip encrypts card information, making it more secure than the magnetic strip buyers have swiped for years. As incentive to accept the new technology, retailers who aren't ready today, could be on the hook for fraudulent purchases instead of credit card companies.

"What I'm going to do is be very careful with cards and ask for ID," said Greg Foreman. "And make sure they're good cards. That's all I can do."

Keith Squires at the Pathmaker Group, an IT security company, said the chip works as a last line of defense at the point of purchase. The business community had three years to be ready he said, but has procrastinated somewhat.

"There's training issues," he said. "They have to teach their people who run the registers how to use these things. Consumers have to be informed on what the heck's going on."

Consumers have to insert the new cards in a slot now, rather than swiping them.

Smaller retailers he said can just get new equipment from providers. For larger companies the expense to change over systems will be much more expensive, and time consuming.

The chip does not protect though against fraudulent on-line use. With the card number, expiration date and security code, a thief could buy items just like they have always been able to.

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