DENVER — Brian Cook with Perfect Processing is talking to a lot of local business lately.
“Hundreds and hundreds and hundreds,” he said.
Cook owns a credit card processing company and said that starting Oct. 1, a major change in credit card transactions takes effect and it could catch a lot of people by surprise.
“Consumers don’t understand why they’re getting new cards,” he said.
Banks are sending out millions of new credit cards. It’s a system other countries already use. Instead of magnetic strips, the new cards have a microchip, making the cards a lot more secure and fraud proof.
“It’s a lot harder for people to scam and target your credit card,” said Erin O’Neill with the Better Business Bureau.
The card will look a little different, with a square containing the microchip instead of a magnetic strip. And you’ll insert the card instead of swiping it. The biggest change impacts merchants.
“Merchants are behind the times,” Cook said. “Less than 40 percent of merchants in the U.S. will be compliant by October 1 and it’s scary.”
Scary he added because starting in October the merchant, not the bank, will be liable for fraud if they have not updated to the new microchip card equipment.
Cook said the terminals cost about $200 and the technology is constantly evolving. He predicts it won’t be long before actual credit cards become obsolete.
“Mobile processing is the wave of the future,” he said. “Everything will be mobile.”