Smart Cards Coming

Beginning in October 2015 in the US, liability for credit card fraud will sit with whichever entity, the issuer or the merchant is using the less secure equipment. A merchant would be penalized if it doesn't have the equipment to accept chip cards and suffers an unauthorized purchase with a card that had a chip in it. The bank would be liable if it doesn't issue chip cards and one of its customers makes an unauthorized transaction with a traditional card at a store that accepts chip cards. Finally the US is beginning to catch up to the many countries that have had this technology for years.