Chip-Enhanced Credit Cards

HURRICANE GATES IN THE NORTHEAST ONE IN PROVIDENCE, RHODE ISLAND, THE OTHER IN NEW BEDFORD, MASSACHUSETTS RETAILERS HAVE LESS THAN 24 HOURS TO UPDATE THEIR SYSTEMS FOR THE NEW CHIP ENHANCED CREDIT CARDS

BUT ONLY A QUARTER OF BUSINESSES NATIONWIDE HAVE THE NEW MACHINES NEEDED TO MEET TOMORROW'S DEADLINE AND MANY CREDIT CARD USERS DON'T HAVE THE NEW CARDS IN THEIR WALLETS, LESS THAN HALF OF US STILL WAITING FOR THESE NEW CHIP ENHANCED CARDS CBS 2'S DAVE CARLIN HERE TO HELP CLEAR IT UP Reporter: THE CARDS WITH THE CHIP YOU'RE GOING TO DIP AND THE OLD ONES YOU STILL SWIPE YOU CAN USE BOTH KINDS BUT FOR SHOPPERS IT'S A SMALL LEARNING CURVE

FOR MERCHANTS IT'S A BIG DEADLINE AND CHANGE CHECK YOUR CARDS THIS IS THE CHIP UPDATING THEM TO BECOME MORE SECURE IT CAME IN AUGUST WITH THE CHIP ON IT Reporter: WITH SUSAN'S UPDATED CARD, NO MORE SWIPING

NOW DIPPING INTO NEW POINT OF SALE TERMINALS WHERE THE CARD STAYS UNTIL THE TRANSACTION IS COMPLETE BUT MORE THAN HALF OF US DON'T HAVE THE NEW CARDS YOU STILL DON'T HAVE THE NEW CHIP ON YOUR DEBIT? YES DEBIT STILL WAITING? STILL WAITING Reporter: FOR CUSTOMERS, THE NEW MACHINES TAKE BOTH KINDS OF CARDS

BUT MERCHANTS ARE UNDER PRESSURE THURSDAY IS THE DEADLINE FOR INSTALLATION WHICH BIG RETAILERS LIKE TARGET AND WALMART HAVE DONE BUT MANY SMALLER STORES ARE NOT READY WE HAVE NOT GOTTEN ANYTHING YET IT'S OCTOBER 1 TOMORROW Reporter: THE OWNER OF DELPHINIUM GIFTS IN MIDTOWN COULD BE HELD LIABLE FOR FRAUDULENT PURCHASES PAYING OUT OF POCKET WHAT BANKS USED TO COVER

HERE'S AN EXAMPLE OF WHAT CONCERNED SOME MERCHANTS SAY SOMEONE BUY THIS IS $60 CANDLE WITH A COUNTERFEIT CARD BASED ON ONE OF THE NEW ONES IF THE STORE DOESN'T HAVE THE NEW SYSTEM AND TERMINAL THE MERCHANT IS FORCED TO TAKE THE LOSS IF WE DON'T GET THIS IT WILL BECOME MORE OUR RESPONSIBILITY OVERALL THERE'S A LOT OF CONFUSION

Reporter: MATT SCHULTZ WITH CREDITCARDSCOM SAYS THE NEW TERMINALS COST ANYWHERE FROM A FEW HUNDRED DOLLARS TO MORE THAN $1,000 EACH AND MANY BUSINESSES WON'T CONVERT TO THE NEW SYSTEMS UNTIL NEXT YEAR SOME MERCHANTS JUST AREN'T GOING TO BOTHER WITH IT BECAUSE THEY DON'T NECESSARILY THINK THAT IT'S WORTH THEIR MONEY EVEN WITH THE RISK OF BEING LIABLE FOR CREDIT CARD FRAUD Reporter: HE SAYS BEFORE THE HOLIDAY SHOPPING SEASON HE WILL HAVE THE NEW DIP THE CHIP TECHNOLOGY

I THINK IT'S GOOD IN THE LONG RUN HAVING EXTRA PROTECTION FOR EVERYONE IS THE WAY TO GO YOU WILL NEED THE NEW CHIP ENHANCED CARDS AND IF YOU