Retailers Feeling Pressure of 2015 Chip and PIN Deadline
October 2015 may seem like a date far off in the future, but it is too close for retailers needing to upgrade their card payment processors. Merchants who fail to complete the transition before the deadline will be held responsible for credit card fraud for customers using chip and PIN cards, putting these retailers at high risk for future hacks.
Updating credit card processors to accept new cards and getting banks to issue those new cards could take more than a year to complete. That is why merchants must start the transition now to avoid missing the deadline. Otherwise, these merchants could be targeted by debit and credit card hackers.
Lee Jurgens, chairman of the board for the Merchant Advisory Group, said, “It’s going to be an unbelievable race for merchants to get this done by October 2015. If retailers don’t have this in place, the fraud is going to go to those places that don’t do chip-and-PIN. First to the retailers that don’t have this in place, then to e-commerce.”
The new technology could mean the end to the antiquated magnetic credit card strip in America, which has already been virtually abolished in most parts of Europe. Credit card processors will still be able to accept these cards, but most consumers will have new cards to use before then.
Panelists at a cybersecurity event held by First Data Corp indicated that banks and merchants alike are working quickly to meet the upcoming deadline.