MMeM, Vol.13 Issue 8 – Not Hip to the Chip, yet

On October 15, 2015, retailers were encouraged to ditch credit card swiping technology for the “chip”, which was more secure and in use just about everywhere across the globe but here. Since then, many of you may have received new cards with CHIPS in them. But, how many times have you actually used said chip? Moreover, how perplexed are you when you do insert the chip card, it reads, pays, and then still wants a signature? Yeah, that’s also this country’s way of overthinking.

Apparently, in other euro-countries and technology embracing enclaves they require a 4 digit pin with a chip card purchase. Sounds nice and simple doesn’t it? Yeah, apparently our industry didn’t think so and wanted to cling to the illegible scribble that is SO secure in addition to the CHIP once it’s actually in use.

The chips, also called EMVs, because they were developed by Europay, MasterCard, and VISA, are estimated now to be adopted by retailers at a rate of 23,000 a week. With a guesstimate of 8 million merchants in the U.S., it’s also estimated that the industry is looking at a 40% adoption rate. These chips are important for merchants because a purchase with a chip enabled card takes the onus off of them for fraudulent charges. But, the transition isn’t simple or cheap. The “terminals run about $500 each“, next they need to install software so the chip transactions can work with current systems, and then they “need to be certified by the banks and card networks that they work with”.

So, all of that is to say, I think it’s a safe bet that we may want to get used to this scene for a while…