In some cases, retailers are being hit with an increase in chargebacks for fraudulent transactions blamed on the lack of EMV acceptance, even though new chip readers
are in place waiting for certification, the NRF said.
The Salvation Army is about halfway finished with converting associated stores to chip readers
, according to Tim Raines, marketing manager.
There are consumer complaints that chip readers
take longer for an authorization than just a swipe.
A number of local retailers now have the new chip readers
installed but many of them aren't yet equipped to accept PINs, so signatures are being required - at least in the interim - for debit cards as well as for credit cards.
"Payment processors and other providers have been slow to conduct certifications for small- and medium-sized merchants; so far only a fraction of merchants who have sought certifications have been able to obtain them, and the merchants who have been stuck in the certification queue are at increased risk of being victimized by fraud because of their inability to use their chip readers
," Durbin said.
Chip cards have the potential to be used in more secure e-commerce in the future as chip readers
could be attached to personal computers, phones or digital televisions.
migration to EMV chip technology, fuel merchants are working to implement chip readers
at fuel pumps which will protect against counterfeit card fraud.
The system should include handheld RFID chip readers
which have capability to access cart maintenance records in the field and the ability to enter and upload additional data in the field on demand and must acquire GPS data in the field to within 3 meters accuracy.