Taking effect today, businesses that don’t have credit card machines capable of reading ‘card chips’ are liable for fraudulent charges.

I visited a local business in McAllen, where the manager says the switch is inconvenient.

Swiping your credit card is a thing of the past. The newest technology, aiming at reducing credit card fraud, requires you to ‘dip’ your new chip-enabled card instead. A minor change for consumers, but a major one for business owners.

“We had to get a new processor, which cost us roughly $300. It’s a little inconvenient having to come in, having to change all the wiring, programming, reprogramming, we have to train all our employees on the new system.”

According to one major credit card company, systems range in price from a few hundred dollars to thousands of dollars.

“If we were to get a claim for $500 and have to pay that back… I’d rather pay the $300 for the system, than having to pay someone back the $500.”

If businesses don’t upgrade to chip-reading systems, they’re liable for fraudulent charges. Aside from the chip-reading machine, there are other steps to limit credit card fraud.

“We do have to make sure the card is signed and the signature matches that signature and the name on the card. And the name on the card with the one on file, and we just need to make sure it is that person using the card.”

It takes longer, but many are in favor of the new check-out process.

“How big of a hurry can you be in–to not want to protect your credit?”

Stephen Jennings says in the long run–the change is a win-win situation.

“It will maybe keep people a little less apt to steal someone’s credit, because it’s harder. It will protect the business as well as the consumer.”

If you don’t have a chip card yet, don’t worry, your magnetic strip will still work. Most banks will issue you the new card when your current card expires.