Small business owners who take Amex, read this!

[AllieNeko]

If you're a small business owner who takes American Express, and you can't read the chip on cards (e.g. dip chip cards instead of swipe them), Amex will pay you $100 to contact your acquirer and get chip-enabled by April 30. If you don't complete this upgrade by October 1, you'll be on the hook for counterfeit fraud costs. And, even better, for many merchants, it may only cost you about $100 to do the upgrade as you may simply need to purchase an EMV-capable PIN Pad (especially for certain First Data terminals like the FD100 and FD200, it is likely all you'll need is to add an FD35 PIN pad and get everything enabled).

So, Amex will pay for a substantial chunk of the cost of an upgrade you need to do anyway, if you do it five months early. And, your customers get the benefit of knowing that if someone copies the magnetic stripe on their card, it can't be used at your store (assuming they have a chip card). Can't beat this deal (which is the point, they're giving an incentive to make sure small businesses get on board quickly, otherwise come October 1 when the big stores are almost all chip-enabled, fraud isn't going to go away - it's just going to shift from the Walmarts of the world to the small business owners - and that is something Amex definitely does NOT want):

https://www209.americanexpress.com/merchant/services/en_US/landingPage?va=us-mer-fightfraud-EMV

P.S. I'm not affiliated with Amex or any other payments industry company. I am a consumer who wants to see this happen as quick as possible because I'm sick of dealing with card cloning, and I think this is a really great offer for small business owners. In reality, there are a lot of exclusions - franchisees, for example, are not eligible. This is for the true local community business - the type of place that otherwise may never upgrade, and might be tempted to stop accepting cards when they get a huge fraud bill come October, rather than upgrade.

 

[jafingi]

Amazing that the US still uses magnetic cards.. We've used chip cards the past 11 years in most of Europe. Must be troublesome for many Americans if going abroad. Many places in European countries don't even accept magnetic cards.

 

[yg17]

Amazing that the US still uses magnetic cards.. We've used chip cards the past 11 years in most of Europe. Must be troublesome for many Americans if going abroad. Many places in European countries don't even accept magnetic cards.

We're starting to get chip cards. I have 3 cards with chips and had no problem using them on a recent trip to Germany.

Before I had chip, I've only had one place in London refuse to accept my magstripe card - a McDonalds.

 

[JamesMike]

I travel a lot so I have both to be on the safe-side.

 

[ucfgrad93]

None of my cards have a chip.

 

[AllieNeko]

Amazing that the US still uses magnetic cards.. We've used chip cards the past 11 years in most of Europe. Must be troublesome for many Americans if going abroad. Many places in European countries don't even accept magnetic cards.

More amazingly, the cards we're getting aren't (except for three banks) chip and PIN - they're chip and signature.

None of my cards have a chip.

Call your bank and ask, let your demands for more secure payments be known.

 

[jafingi]

More amazingly, the cards we're getting aren't (except for three banks) chip and PIN - they're chip and signature.

That sounds like a lot of wasted time, and a huge security issue.

 

[AllieNeko]

That sounds like a lot of wasted time, and a huge security issue.

I agree it is silly and both should be rolled out together like done in many other counties but it isn't a security issue per se. Chip and PIN, while often done together, are separate things. Chip addresses counterfeiting by proving the card is genuine. PIN ensures the user of the card is the authorised cardholder (e.g. it prevents physical theft). Since most fraud is counterfeit cards, chip and signature fixes most of the problem. But why not just go all the way? Fear Americans will revolt and refuse to use chip cards or cards at all. The US is a very techno-phobic market. The idea of putting chips on cards at all is causing quite a bit of pushback and merchants aren't even enabling it yet. Walmart did for awhile and people reacted so badly they disabled enforcement again.

Add a PIN to that and, so the thinking goes, banks would have no chance of consumer acceptance.

 

[Tsuchiya]

Pin>signature.

It blew my mind when I first used my credit card in the US. You mean I just have to swipe then squiggle my signature in this panel? You're not even going to check?!

 

[yg17]

Pin>signature.

It blew my mind when I first used my credit card in the US. You mean I just have to swipe then squiggle my signature in this panel? You're not even going to check?!

I agree that the US should go chip and pin, but as stated earlier, most credit card fraud is from stolen credit card numbers (via hacks, skimmers, social engineering, etc) and not theft of the physical credit card itself, chip and sig will go a long way to curbing credit card fraud.

 

[velocityg4]

Pin>signature.

It blew my mind when I first used my credit card in the US. You mean I just have to swipe then squiggle my signature in this panel? You're not even going to check?!

Fake ID's are cheap and everything is insured. Many cashiers are also lazy or trying to churn through customers faster.

What is funny though is that they don't look at cards but will scrutinize bills larger than $20. Even though counterfeit currency is insignificant in scope compared to credit fraud.

 

[yg17]

Fake ID's are cheap and everything is insured. Many cashiers are also lazy or trying to churn through customers faster.

What is funny though is that they don't look at cards but will scrutinize bills larger than $20. Even though counterfeit currency is insignificant in scope compared to credit fraud.

Stores aren't liable for credit card fraud, so they couldn't care less if the card is fraudulent. They are, on the other hand, liable for counterfeit currency.

With the liability shift in October, will be interesting to see if businesses that haven't converted to EMV start looking at signatures.

 

[Carlanga]

More amazingly, the cards we're getting aren't (except for three banks) chip and PIN - they're chip and signature.



Call your bank and ask, let your demands for more secure payments be known.

I think many banks are taking it slow because of business owners systems actually.

I have one chip card and 2 magnetic only cards. The chip card has been giving issues when reading by chip in walmart and a few of other stores this year. Called the bank and was told various times it is not my chip, but walmart and others are having issues w the chips. After having to talk a lot w the rep I was finally told I could get a new card, but that my old one is running fine. I don't know who to believe since the chip used to work at walmart and others and now it works erratically in different places, especially not working well in small stores/restaurants and walmart.

Chip cards prob cost much more to make and banks don't want to start giving replacements due to problems w the stores systems and not the cards.

----------

Fake ID's are cheap and everything is insured. Many cashiers are also lazy or trying to churn through customers faster.

What is funny though is that they don't look at cards but will scrutinize bills larger than $20. Even though counterfeit currency is insignificant in scope compared to credit fraud.

I have behind my CCs in the sig part to "ask for ID" instead of my sig. I say it has worked well 80% of the time. Fake gov issed IDs are harder to make now than before, still possible but not to low level stealers.

 

[AllieNeko]

I think many banks are taking it slow because of business owners systems actually.

I have one chip card and 2 magnetic only cards. The chip card has been giving issues when reading by chip in walmart and a few of other stores this year. Called the bank and was told various times it is not my chip, but walmart and others are having issues w the chips. After having to talk a lot w the rep I was finally told I could get a new card, but that my old one is running fine. I don't know who to believe since the chip used to work at walmart and others and now it works erratically in different places, especially not working well in small stores/restaurants and walmart.

Chip cards prob cost much more to make and banks don't want to start giving replacements due to problems w the stores systems and not the cards.

That is VERY true, Walmart's system is a mess. Thus, why they actually disabled the main security functions on their chip reading (they no longer require you to insert the chip, which eliminates most of the point). It works pretty well now, though. They've fixed a lot of problems lately. They still do not allow you to use chip debit cards, though, and if you try the system will freak out.

I'm surprised, however, that you've had issues with smaller businesses that accept chip cards. I've had no issue at any of these places, at all. They just work.

 

[Carlanga]

That is VERY true, Walmart's system is a mess. Thus, why they actually disabled the main security functions on their chip reading (they no longer require you to insert the chip, which eliminates most of the point). It works pretty well now, though. They've fixed a lot of problems lately. They still do not allow you to use chip debit cards, though, and if you try the system will freak out.

I'm surprised, however, that you've had issues with smaller businesses that accept chip cards. I've had no issue at any of these places, at all. They just work.

Interesting. Didn't know Walmart had turned it off completely. I think maybe in some restaurants over here they have turned it off as well and the waitress doesn't know and maybe uses the chip and gives them an error.

 

[AllieNeko]

Interesting. Didn't know Walmart had turned it off completely. I think maybe in some restaurants over here they have turned it off as well and the waitress doesn't know and maybe uses the chip and gives them an error.

Walmart no longer requires it. They turned off enforcement. You still can use it. Restaurants require the business know how to use their equipment. Hardly a chip issue

 

[senseless]

As far as I know, the chip cards need to be inserted and locked into the card reader. I don't understand how you can have some people still swiping and other people inserting and waiting. Will the card readers work both ways?

 

[adk]

As far as I know, the chip cards need to be inserted and locked into the card reader. I don't understand how you can have some people still swiping and other people inserting and waiting. Will the card readers work both ways?

Walmart is just doing this right now to get people familiar. Outside of the US you are required to insert the card first. If the chip is unreadable you may then swipe the magstripe.

 

[AllieNeko]

Walmart is just doing this right now to get people familiar. Outside of the US you are required to insert the card first. If the chip is unreadable you may then swipe the magstripe.

Maybe, but it's still severely broken, will only confuse people more, and is just a mess. Walmart's system is a disaster, end of story.