New Credit and Debit Cards to Offer Higher Security Through Microchip

Microchip Debit CardLocal businesses are preparing for a new type of credit and debit cards that are already being issued by banks.The new cards include a microchip in them that generates a specific code when used in transactions, which will help keep cards more secure.

The EMV cards, which stands for Europay, Mastercard, and Visa, require a new point-of-sale terminal for businesses to use to be able to read the chip.

Chez Willy’s owner Brenda Egenlauf tells WGIL that it will be different for restaurants than retail because tips will have to be added in the same transaction.

“Because, usually at a restaurant, you give them your card, they bring it back to the table, and you put a tip on it,” says Egenlauf. “With these new chip compliant machines, you have to do it at the same time. Which means either the customer has to come up and be at the terminal, which is hardwired in, or you have to get a brand new terminal that is wireless and is very expensive.”

Egenlauf says Chez Willy’s has been compliant for a year now and knew the change was happening.

According to Midwest Bank of Western Illinois CEO and President Chris Gavin, all merchants will have to make the system change by October 1st of this year, or they will be held liable for credit card fraud.

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