EMV Credit Cards Interview with KEYE Austin
CreditCards.com Senior Industry Analyst Matt Schulz spoke on Tuesday, September 29, 2015 with Bettie Crossy of KEYE Austin about the September 2015 EMV Credit Cards survey. The interview and transcript are below.
Walt Maciborski: New at six. In just two days all the debit and credit cards in your wallet should have this, a small magnetic chip. The new chip cards are more secure than the old style magnetic strip cards. Thursday’s also the deadline for businesses to install the chip reading payment terminals.
Hema Mullur: But a recent national poll shows only a third of businesses expect to be ready to go October 1. KEYE-TV’s Bettie Cross found out why.
Bettie Cross: The big change is that that swipe is now being replaced by the slide. These new terminals can read the information on the chips that are now being embedded on credit cards. The only problem is, only about half of consumers have gotten their new cards. [Boop] In two days [Boop] this is how the process is supposed to work.
Cashier 1: “$24.63”
Cross: Customers slide a small metallic square on the front of their credit cards into these new terminals. But a quick check of consumers shows most are swiping far more than they’re sliding.
Consumer 1: I’ve only been asked one time in Austin to do a chip card, so far.
Consumer 2: We’re still swiping and signing.
Cross: The delay is due to the fact over a billion debit and credit cards have to be replaced.
Matt Schulz: Nobody’s quite ready for the deadline.
Cross: Matt Schulz from CreditCards.com says from banks to businesses October first is a deadline not many will meet.
Schulz: Merchant’s don’t have the terminals, generally, to accept these cards. Banks haven’t gotten enough of the cards into people’s hands and there’s just a lot of confusion.
Cross: We did a random check of two small businesses in downtown Austin. Amy’s Ice Creams is in the process of making the switch. But so far, customers aren’t clamoring to use the new chips.
Cashier 2: Well, I haven’t had anyone ask about it at all.
Cross: At Snap Kitchen, the new terminals are installed. But the chip readers aren’t yet functional. Paying still takes a swipe of the magnetic stripe.
Schulz: I think by the end of the year we’ll be a lot farther along.
Cross: Even then, some businesses are looking at next year or never when it comes to making the switch.
Schulz: Some merchants just aren’t going to bother with it, because they don’t necessarily think that it’s worth their money, even with the risk of being liable for credit card fraud.
Cross: The new terminals cost a few hundred to more than $1000 apiece, money that’s not in every business’s budget. Betty Cross, KEYE-TV News.