The new cards, which are less prone to fraud, are putting the squeeze on retailers.
A chip-based credit card that’s being introduced in the United States may be good at stopping fraud, but it’s also leading to some serious problems for retailers.
The card — which features account information stored on a metal chip rather than on a magnetic strip — has been popular in other parts of the world for years, but both banks and retailers have delayed its rollout in the U.S., reports The Wall Street Journal.
It is expected that by the end of the year around 575 million of the new cards will be in circulation — around 75% of credit cards and 40% of debit cards are expected to use the technology.
But there are problems, as the Journal explains:
The Journal notes that retailers are facing an October deadline, at which point the liability for fraudulent purchases shifts from the banks that issued the cards to the retailers.