What you need to know about chip cards

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By richmond.com

You’ve probably noticed chip-card readers appearing at more checkout lines at many retail and grocery stores. But the rollout of new credit-card rules, which went into effect last October, has been slow, spotty and sometimes frustrating.

The new rules make merchants liable for fraudulent transactions if they have not updated their terminals to accept chip-card, or EMV, payments.

But only 50 percent of locations were expected to have functioning readers by the end of 2016, according to Visa.

Card issuers are not doing much better. More than 400 million chip cards are now in circulation, says Randy Vanderhoof, director of the EMV Migration Forum — but that’s still only one-third of the estimated 1.2 billion total cards on the market.

They’ve got your number: The microchip in an EMV card drastically reduces fraudsters’ ability to create counterfeit cards. But it does not prevent crooks from using a stolen card number to pay online or over the phone.

Canada saw a 133 percent spike in fraud involving such “card not present” transactions from 2008 through 2013, as the country made the switch to chip cards, according to Aite Group.

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