Action 9

Action 9: Why you still have to 'swipe' your credit card in most places

By Jason Stoogenke, wsoctv.com
By Jason Stoogenke, wsoctv.com

CHARLOTTE, N.C. — Credit cards with chips are supposed to protect you better from identity theft, but it's been more than a year since they came on the scene, and many businesses still aren't accepting them.

"There are quite a few [merchants] and they'll have like a notice on the board that says it's not ready, or something to that extent," said Charlotte shopper Davita Galloway.

In fact, Visa told Action 9's Jason Stoogenke that 65 percent of merchants in the U.S. still have to make the switch, which, the credit card company's officials say, isn't bad compared to other countries.
But, Galloway said, "They should have been ready about a year ago."

The chip’s purpose is to prevent ID theft.

Mastercard officials told Stoogenke there's no "silver bullet," but that the chips are a good step.

Visa's Stephanie Ericksen told Stoogenke that fraud dropped 43 percent at businesses that made the switch over the past year.

"So it's definitely working, and as more and more merchants are implementing chip (transactions), we're seeing that counterfeit fraud start to go down," she said.

But many merchants need custom software, and then, they need payment processors to test it.

One example is Firehouse Subs.

Firehouse CFO Vince Burchianti told Stoogenke that Firehouse was ready for chips more than nearly two years ago, but that the company still waiting for its payment processor to approve the restaurant's switch.

"I have the hardware in place in my restaurants, but I have no ability to use it because I'm waiting on others," he said.

The credit card companies that came up with the test requirements trimmed the list a few months ago to move things along.

"We've taken that from 35 tests down to about 12 or 14," Ericksen said.

Visa does not hold customers responsible for unauthorized charges regardless of whether they use the chip, or swipe their cards.

That said, merchants who haven't made the switch by now are expected to wait until after the holidays to change over, instead of making a big change during the height of the shopping season.

List of some area businesses where you still have to swipe your card, instead of use the chip:

  • Aldi
  • Bob Evans
  • Bojangles'
  • Chick-fil-A
  • Costco
  • Dunkin' Donuts
  • Earthfare
  • Firehouse Subs
  • Fresh Market
  • Harris Teeter
  • Hobby Lobby
  • Ikea
  • Jersey Mike's
  • McDonald's
  • Off Broadway
  • Panera
  • PetSmart
  • Rack Room Shoes
  • Rite Aid
  • Ross
  • Quik Trip

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