The October 15th deadline to replace all credit and debit cards with the secure EMV chips may be pushed back. The recent hacking of major retailers like Target and Neiman Marcus prompted the U.S. to mandate the technology already popular in Europe. EMV is essentially a microchip embedded into the card that generates a unique code for every transaction making it more difficult for thieves to use fake cards with stolen data. An independent consultant firm estimates that roughly half of the cards in the United States will not have the new technology by the October 15th deadline.
What does that mean for the card issuers and retailers? It means they will most likely be responsible for any fraudulent transactions that could have been prevented with the EMV chip technology. Globally debit and credit card theft is an 11 billion dollar problem every year and growing.
While a major hassle for retailers, ultimately they will all have to adjust and make the necessary changes and adapt to the EMV technology. Consumer groups say that fraud is still much more of an inconvenience than adapting to the new technology.
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