Major Credit Card Overhaul Deadline Today

October 1st, 2015

Major Credit Card Overhaul Deadline Today

Summary Analysis: 

In the wake of increased hacking of consumer credit card information and payment fraud, major payment processors have set into motion new requirements to reign in the problems. Starting today, October 1, 2015, Visa and MasterCard will require merchants to provide payment processing machines that allow consumers with fraud-prevention chips to “dip” rather than “swipe” their credit and debt cards.  American Express will require the same as of October 16, 2015.

After the looming deadlines pass, merchants who do not offer the separate processing for the safer chip-enabled cards, will be liable for fraudulent transactions that occur at their business.  The new rules will likely furnish a rapid shift among not only merchants but also consumers in adopting the new chip technology.