EMV Credit Cards Interview with The Today Show
Matt Lauer: All right, we’re back now, 7:45, with the hacking of America. If you haven’t gotten one of those new credit or debit cards in the mail, you are going to be getting it soon. They’ve got that security chip that’s supposed to cut down on fraud.
Savannah Guthrie: But the changeover is leading to some confusion. NBC’s Tom Costello has more on what this means for you. Tom, good morning.
Tom Costello: Hi guys, good morning, confusion and profit warnings on Wall Street. There’s a good chance you’ve gotten at least one of these new credit cards with the chip on it, you’re supposed to dip it or insert it into the reader, not swipe it, but a lot of retailers aren’t ready to do that yet, and already, there’s a lot of finger pointing. They’re here, whether you swipe, dip, punch in a PIN or go without, those new credit cards embedded with a security computer chip are now hitting the cash registers nationwide, but it has not exactly been a smooth rollout.
Female 1: We just got the new MasterCard with the new little chip in it, and it was compromised.
Male 1: I had to slide it through, and it didn’t take.
Female 2: I didn’t know why my credit card wasn’t going through, that’s never anything that you want to experience.
Costello: While October 1st was the deadline for retailers to have the new credit card readers in place, most still don’t, and so far, only about 20% of consumers have actually received cards in the mail.
Schultz: Any time that you’re dealing with unhappy customers or forcing customers to take steps that they wouldn’t normally have to do, it’s an issue that retailers are going to have to deal with.
Costello: It’s a lot to deal with. Thank about all the companies that automatically charge your credit card every month; newspapers, websites, gym memberships, kids’ music classes, it turns out a lot of those charges aren’t going through because the old credit card expire and customers aren’t quick to update their billing information. Netflix’s stock dropped 8% Thursday and blamed the new credit card switch over for slowing its growth.
Hitha Herzog: I don’t think the banks and the credit card companies are doing enough to educate the consumer. You get your new card, you realize that there’s a chip on it, you’re not sure how that really works, it’s sort of trial by error.
Costello: So what should you do when your new card arrives? First, activate the card, usually with just a simple phone call. Second, provide your updated payment information to any of the companies that bill you regularly. Sometimes the number doesn’t change, but the expiration date does. Third, beware, scammers are sending emails asking for your credit information, don’t provide it. Watch your bank statements for any charges that look suspicious. Eventually you’ll insert your new card into the reader rather than swipe it. The transaction may take a few seconds longer, but security experts say it goes a long way towards protecting you. Yeah, we’ve heard a lot of complaints from folks who say that they’ve been told to swipe their cards, not insert them. It’s happened to me, I’ve gone to the store, and I said can I insert it the right way, and they said no, no, no, we’re not ready for that. That should eventually change. Most of the new cards don’t require PIN codes, but by the way guys, Target is adding PIN codes to their cards. Remember, they were hit by that massive security breach a few years ago.
Lauer: Yeah, Tom, thank you very much.