The new ‘smart’ credit and debit cards: What Idaho businesses should know

Calling the room that houses the credit card terminal at Signs2Fit an “office” in Garden City would be a stretch. The machine sits on a workbench upstairs from the buzzing flatbed printer and all of the other noisy machines Brian Price and his employees use to make signs and produce a plethora of embroidery, printing and anything else that can be emblazoned with a business name.

 

But the room is where Price has processed about 100 orders per month since he bought the business in May. After completing his purchase through Zions Bank, his Zions contacts recommended he upgrade his credit card terminal in anticipation of the nationwide rollout of new credit and debit cards. The “smart cards” embed a thin chip that will eliminate some kinds of card fraud.

LIABILITY SHIFT

Changing credit card terminals costs money, but there’s a good reason most businesses should spend it. Today, some kinds of fraud are covered by the company or bank processing the payment. After Oct. 1, any businesses operating with old terminals will become liable for fraudulent in-store purchases, excluding phone and Internet orders.

 

Read More: The new ‘smart’ credit and debit cards: What Idaho businesses should know | Banking and Finance | Idahostatesman.com.