Business in different stages of transitioning to chip-based credit cards

6 months 3 weeks 2 days ago October 05, 2016 Oct 5, 2016 Wednesday, October 05 2016 Wednesday, October 05, 2016 8:10:00 PM CDT in News
By: Alyssa Salcido, KOMU 8 Reporter
loading

COLUMBIA – It’s already been over four years since the U.S. began the transition of credit cards from the magnetic strip to the EMV chip but it’s far from over.

One Columbia resident was growing impatient because it's still not always clear which system a business uses.

“It’s kind of frustrating because automatically you swipe and they are like ‘Oh wait, no we have a chip reader now’, then you insert it and it just adds on to the whole process,” Sade Howell said.

The Central Bank of Boone County said there’s currently no mandate to force businesses to switch to the EMV chip technology, but banks have introduced incentives.

Oct. 1 marks one year since banks first introduced the a shift in liability for credit card transactions. 

The liability shift affects businesses because, if fraud occurs, it makes the party with the least chip compliant technology pay. In other words, if the business hasn’t updated its technology, it will pay the fraudulent transaction.  

For bigger corporations, like Walmart and Target, the liability shift encouraged them to switch because they deal with fraud more often.

For local businesses, it isn’t always that simple. According to the EMV Migration Forum, the cost of one chip-reading terminal for a business can range anywhere from $500 to $1,000.

Rally House Columbia hasn’t updated its technology yet because of that.

“We’re not a huge company, so sometimes it doesn’t pay if people still aren’t using it. I just don’t think it pays for us to spend that money on it,” Manager Karista Bierly said.

But the vice president for Consumer Banking at Central Bank of Boone County said smaller businesses should worry about the shift.

“I think the liability shift is even more incentive for a small business owner," Angela Gentry said. "A single fraud transaction could make or break their business. For example, if someone fraudulently purchase several thousands of dollars in merchandise and we later find that the card was stolen. The card issuer is EMV chip compliant but the merchant isn’t. The small business owner is now responsible for that loss.”

ACME Columbia made its upgrade soon after the shift occurred.  

“We got the new technology in spring of 2015,” said manager Mitchell Gerringer. “We started using it in every transaction probably more summer of 2015. We started slowly implementing it, but now a lot more people are using it.”

Sub Shop General Manager Scott Schulte said he was offered another incentive to make the change.

“With the chip, it’s a cheaper rate for us every time someone uses that as opposed to punching it in manually or even swiping it,” Schulte said.     

Some new businesses never get a swipe machine in the first place, such as Fortuity, a clothing store in downtown Columbia.

“When we opened this store we got the newest technology. You have to insert the chip, which takes a little longer than actually swiping the debit or credit card without the chip, but it’s worth it,” manager Kristen Chase said.

The EMV Migration Forum estimates 50 percent of EMV terminals will be enabled by the end of 2016, and 90 percent by the end of 2017.

However, the Central Bank of Boone County said the old technology may never be completely phased out.

“We expect to continue to see magnetic strip cards. Some merchants may not choose to upgrade their merchant machines and will need a way to continue to accept cards for payment,” Gentry said.

 

More News

Grid
List
ASHLAND — Search and rescue crews found a woman in Cedar Creek this afternoon after a kayaking accident. She was... More >>
6 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 11:20:00 PM CDT in News
KANSAS CITY (AP) — A Missouri woman paralyzed by Lou Gehrig's disease isn't letting any limitations from the incurable disease... More >>
9 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:45:00 PM CDT in News
JEFFERSON CITY (AP) — New Missouri Gov. Eric Greitens' involved and sometimes aggressive leadership style is getting mixed reviews from... More >>
9 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:41:12 PM CDT in News
COLUMBIA — Stephens College fashion design, marketing, management and communication students hosted the 73rd annual student design fashion show, called... More >>
9 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:12:00 PM CDT in News
FULTON — The city of Fulton is teaming up with William Woods University Chemistry Professor Joe Kyger to figure out... More >>
9 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:09:23 PM CDT in News
CALLAWAY COUNTY — First responders rescued three families from their homes in Callaway County Saturday during floods that swept through... More >>
10 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 7:47:00 PM CDT in News
FULTON — Emergency officials responded to a fatal crash near the intersection of State Route O and State Route UU... More >>
12 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 5:23:00 PM CDT in News
COLUMBIA — Despite non-ideal weather conditions, people gathered at MU Saturday afternoon as a part of a nationwide climate change... More >>
13 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 4:46:00 PM CDT in News
JEFFERSON CITY — Ever wonder what to do with your unused prescription drugs? The annual 'Drug Take Back Day' helps... More >>
14 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 3:37:00 PM CDT in News
COLUMBIA — Police officers responded to an armed robbery at Check Into Cash Saturday afternoon. According to a release... More >>
14 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 3:27:00 PM CDT in News
MID-MISSOURI — Flooding caused road closures on Saturday. KOMU 8 News viewers shared photos and videos of what they saw.... More >>
15 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 2:31:00 PM CDT in News
COLUMBIA — The Boone County Office of Emergency Management has reported numerous road closures due to flooding Saturday. ... More >>
16 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 1:32:00 PM CDT in News
JEFFERSON CITY (AP) — Gov. Eric Greitens has agreed to pay a penalty to the state Ethics Commission for failing... More >>
19 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 10:50:00 AM CDT in News
JEFFERSON CITY (AP) — Gov. Eric Greitens has bought a lakeside house in a resort community west of St. Louis.... More >>
20 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 9:14:38 AM CDT in News
KANSAS CITY, Mo. (AP) — The maternal grandmother of a 7-year-old Kansas boy whose remains were found in a pigsty... More >>
20 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 9:09:00 AM CDT in News
COLUMBIA — A free carnival-style event Saturday aims to combine fun with education about childhood safety and accident prevention. The... More >>
22 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 7:44:00 AM CDT in News
FULTON — Equestrian students at William Woods University have the unique opportunity to learn from a living legend April 28-30.... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 5:53:00 AM CDT in News
COLUMBIA — According to a Columbia Police Department press release, officers arrested a suspect wanted by the St. Louis Police... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 4:12:00 AM CDT in News
Columbia, MO
Broken Clouds 54°
7am 62°
8am 59°
9am 59°
10am 60°

Select a station to view its upcoming schedule:

Coming Up Next

5:30a
Open House
6:00a
Hometime
6:30a
Today's Homeowner with Danny Lipford
5:30a
Paid Program
6:00a
Peter Popoff Miracle Ministry
6:30a
Paid Program

Tonight's Schedule

7:00p
Little Big Shots
8:00p
Chicago Justice
9:00p
Shades of Blue
6:00p
Dark Blue
8:00p
Marvel's Agents of S.H.I.E.L.D.
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld