Half of U.S. consumers don’t have, and don’t understand, chip cards
More than half of U.S. consumers haven’t received new chip-based credit or debit cards to improve security of in-store purchases, according to a new survey.
The August survey of 5,027 Americans also found that 56% aren’t even aware what a chip card is, even though the technology has been widely used in other countries for years.
The percentage who said they hadn’t received a chip card as of August totalled 54%. Banks have been mailing out the new cards with increasing frequency in the past year. Chip cards include an embedded computer chip for greater security beyond the magnetic stripe seen in conventional cards.
Banks have been speeding up the issuance of chip cards to bolster security ahead of an Oct. 1 deadline. That’s when merchants must update in-store payment terminals to accept chip card transactions. After that date, merchants without updated technology must assume the financial liability in the event of credit card fraud; there are some exceptions, such as gas stations that face a later deadline.