Money Minute

Duluth, MN (NNCNow.com)--Banks and business are changing their credit card machines to help make your next purchase more secure. With a simple swipe, your purchase has been paid for, but that's about to end. "Normally what we would have customers coming into, they would be swiping the card but now with new chip technology they are going to be inserting the card," said Ryan Miles, a Beacon Bank Representative. The new chip cards, also called smart cards, are starting to be sent out to customers all over the USA. There is a deadline for businesses to get machines to accept them if they do not want to be held responsible for any acts of credit card fraud. " Right now banks and financial institutions are liable if there is a fraud on a customer card, credit card or debit card transaction if they are using the swiping technology. After October 1st, they will be responsible for that liability if they don't adopt that change." said Miles. Although new to the United States, EMV technology has been around for a while. Chipped Cards have been around for over 30 years, with France being the first country to issue them to the masses by 1994. That same year that Europay, Mastercard and Visa teamed up to create EMV technology. Canada was the first country in North America to utilize it starting in 2008 and the smart card is now used in over 80 countries. The new system will cost Eric Faust, owner of Duluth Coffee Company, a couple hundred dollars, but he says his customers come first. "We are always concerned about our customer's security and our customers safety. We are glad that it's happening and we know that it is going to cost us something. We are o.k. with it in support of anything that will cause our customers to feel more comfortable," said Faust. And it is because of security that the United States is making this change according to Miles. " It's going to be a win for the consumer, by being more protected with fraud. It's going to be a win for the merchant, by stopping fraud right in its tracks," he said. Although safer, the transaction will take an extra 20 seconds using the EMV technology so there is another form of payment that businesses encourage. " We always appreciate cash sales, " said Faust. Beacon Bank has already sent out its chipped credit cards, and will be sending out chipped debit cards in the next couple of months. The Bank is also hosting seminars for business owners to learn more about the technology.