Today, October 1 2015, is going to be a bad day for small businesses with the old swipe-only credit card readers.
Effective today, all merchants in the U.S. will be held liable for ANY fraudulent transactions that take place in their business if they are still using the “old” swipe-only credit card readers.
The shift, called the EMV initiative, mandates all simple-swipe readers need to have been retired or disabled by today, and new card readers that allow for the insertion of chip-embedded cards must be in place instead. No exceptions.
While big companies like WalMart and Target have had these card readers in place for over a year now, any small business or mom & pop shop that missed the memo from their credit card processors are in for a devastating surprise the next time they contest a false charge or are hit with a massive chargeback from their credit card processing company.
If you see any small businesses with the old swipe-only readers, or if you know anyone running a small business with a swipe-only card reader, tell them to talk to their credit card processing company ASAP to get an upgrade to a chip-reading card reader. They are much more expensive than the plain swipe-only versions, but the liability risk is now FAR too high to ignore.