New credit cards have microchips embedded in them to help protect customers from fraud.
Woody Jones is the assistant manager at Papa Jazz records shop, and he says they won't be getting the new payment terminals for awhile.
By: Mackenzie Grant
You may have received a new credit or debit card with an extra feature. The new microchip cards will soon replace standard swipe cards. Experts say this new technology will provide an extra layer of security.
Every time you use the card, it creates a new, unique code. Using a counterfeit card would be like trying to pay with an expired password.
Stores are required to transition to the new card chip reading form of payment by Oct. 1. They must purchase new terminals that people will dip their cards into, hold and wait for the chip to register. This new terminals are expensive, and the transition is slower than most federal laws allow.
Papa Jazz, a record shop in Five Points, is one of the many Columbia businesses that say they won’t meet the deadline.
“We’re pretty slow adapters to new technology. It’s part of our charm,” says Assistant Manager Woody Jones.
The penalty for missing the deadline is that any fraud activity that happens inside their store is the store’s responsibility, not the card providers.
“We’ll be alright. We’ll still do business,” says Jones.
But many stores are confused as to why the transition is necessary. Employees around the Midlands say they don't know much about the new system, and some even say they had never heard of it.
University of South Carolina student Leah Grubb got her new chip credit card for when she studies abroad. The chip readers are much more common there. She said the main reason she decided to switch was to avoid having to learn multiple saying for payment in different languages.
Her card has yet to make its debut in the United States.
“Since most of the card readers still aren’t equipped to actually put the card in, you put it in and they say ‘oh no that part isn’t working yet,’ so you still have to swipe it” says Grubb. “I’ve never used this chip here.”
Customers will continue to get new cards in the mail and attempt to use them. Not at Papa Jazz though, where Jones predicts they won’t have them for over a year.