Businesses, consumers transition to chip-enabled credit cards

CHICAGO (WPVI) -- Starting Thursday, all businesses that take credit cards must be using the new technology that processes chip-enabled cards. Security chips make it harder to steal your personal information.

The credit card industry's self-imposed deadline to replace old magnetic-strip cards with new, chip-enabled cards is October 1. The chip cards have new technology that makes it harder for criminals to steal your personal information.

"You'll actually put your card into a little cover. People complain that it takes a little bit longer, but that little bit of log time is worth it in the long run so that your data is protected," said Ross Kenneth Urken, editor, Main Street.

But the rollout has been sluggish. About 60 percent of American cardholders don't have the chip cards in their wallets and consumers will need to change their habit of swiping their credit cards to pay.

Instead, they "dip" their new cards into terminals and leave them there until the transaction is complete.

It's an adjustment Jamar Bautista had to make when he received his chip card last month.

"I think i did it a couple of times where I swiped and it bonked on me and I'm like, why is it not working. She said you have the chip. Put it in," Bautista said.

Adding to the slow transition, some businesses are behind in upgrading their machines to read the new chip cards, even though they will be entirely liable for any fraud that may occur.

Target has had the new machines in place for a couple of months.

"Our guests' privacy and security is very important to us," said Rachel Holden, manager at Target.

While experts say the new chip cards won't entirely stop data breaches, it makes stolen credit card information less valuable because thieves can't make clone cards.

"Everyone is concerned about their security. Everyone wants to make sure they're taking the best care of their financial wellbeing," Holden said.

It's important to note that all credit cards will be accepted after the Oct. 1 deadline. New payment terminals will still work with old magnetic-stripe cards, and industry experts estimate that everyone should be able to get a new chip card by year's end.