Let’s be real for a second: The credit card with chip is the dumbest invention in the last ten years. Have our banks never heard of the phrase, “If it’s not broke, don’t fix it?”
Regardless, you probably have a wallet or bottomless purse filled with credit cards with chips now. They’re allegedly supposed to be safer – but only if you’re using them the right way because they’re finicky pieces of technology.
If you have ever wondered why some retailers refuse to make the full credit card with chip conversion at check-out, this is why.
If you swipe a chip card instead of inserting it into the slot, the merchant is responsible for covering any fraudulent charges – not the bank. Some retailers are not in a financial position to cover major security breaches. So, in short, that means you get stuck covering the financial losses, according to Adam Levin, the founder of Identity Theft 911 and the author of Swiped.
Retailers, however, claim that credit card readers must be certified by credit card companies to ensure they work before customers use them. Some have been waiting up to six months to get certified, even though the new system was supposed to be fully implemented by October 2015.
Either way, if you go to the check-out without a chip insert, pay with cash. If you absolutely need to swipe, it’s best you monitor your bank account closely to ensure no fraudulent charges are made.