Six Things to Know About Chip Cards as You Shop for the Holidays
December 16 2015 - 9:15AM
Business Wire
Fifth Third Bank Helps You Stick to Your
Budget
This is the first holiday shopping season when many American
shoppers will use their upgraded chip debit and credit cards. The
chip cards are designed to help cut down on fraud, yet they aren’t
foolproof. As some consumers are still learning how to use their
new chip cards, or are checking to see if a store has a chip
reading terminal, you might expect some delays at check-out
lines.
“It’s an important holiday season for us and the industry,” said
Jimm Bell, senior vice president and director of card services for
Fifth Third Bank. “We’ll have more chip cards than ever before, and
it will be a good time to check how we’re all doing.”
Here are six things to know before you shop:
Will every retailer have a chip reader?
The transition to chip cards and readers isn’t an overnight
switch. Banks in the U.S. have been replacing debit and credit
cards with chip-enabled cards this year, and are continuing to do
so into the new year. Retailers are adding chip card terminals to
their check -out lines, but the process won’t be complete by the
end of the year. So if you have a chip card, but the retailer
doesn’t have a terminal that accepts chip cards, you still can
swipe your card with the magnetic stripe. And if you don’t have a
chip card yet but the store has a chip enabled terminal, don’t
worry, you can still swipe your card with a magnetic stripe at new
chip card readers.
Why does the process take longer?
With the chip, most consumers won’t swipe their cards, but
insert them into card readers, with the chip and face of the card
facing forward. A notice on the screen will alert the customer to
wait for the transaction to finish before they can remove their
card. It can take a little longer, in part because of the process,
but also because many consumers are using chip cards for the first
time and rely on store clerks to explain the process.
Do I need to look out for anything?
Consumers need to make sure they don’t forget their cards at the
check-out counter. Unlike the magnetic strip cards, in which
consumers never have to let go, chip cards are inserted into the
reader for a certain period of time. “We want to remind customers
to remove their card from the terminal at the end of the
transaction,” Bell said.
Will it be safer?
Chip cards offer advanced security for in-store purchases by
making every transaction unique, which makes it more difficult to
counterfeit or copy. If the card data and one-time code are stolen,
that information cannot be used to commit fraud or create
counterfeit cards.
Consumers with chip cards are responsible for the same amount as
they were with magnetic stripe cards. Credit card holders are
responsible for a maximum of $50 in fraudulent charges. That stays
the same with the new chip cards. With debit cards, the amount
depends on how quickly you alert your bank.
However, merchants who haven’t upgraded card readers to take the
new chip cards, could be responsible for fraud loss if they accept
transactions on chip cards that could have been processed as
chips.
What else can I do to prevent fraud?
As consumers use their credit or debit cards more frequently
during the holiday season, they need to keep a close eye on all
purchases to ensure they are valid. One way to check is to set up
text alerts from your bank to show transactions, withdraws or
balances, Bell says. Fifth Third’s banking app makes it easy to set
up alerts.
“Text alerts are a quick way to help you keep track of your
holiday spending,” Bell said. “It’s a good reminder to help you
stick to a budget.”
About Fifth Third:
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. The Company has $142 billion in
assets and operates 1,295 full-service Banking Centers, including
99 Bank Mart® locations, most open seven days a week, inside select
grocery stores and 2,650 ATMs in Ohio, Kentucky, Indiana, Michigan,
Illinois, Florida, Tennessee, West Virginia, Pennsylvania,
Missouri, Georgia and North Carolina. Fifth Third operates four
main businesses: Commercial Banking, Branch Banking, Consumer
Lending, and Investment Advisors. Fifth Third is among the largest
money managers in the Midwest and, as of September 30, 2015, had
$297 billion in assets under care, of which it managed $25 billion
for individuals, corporations and not-for-profit organizations.
Investor information and press releases can be viewed at
www.53.com. Fifth Third’s common stock is traded on the NASDAQ®
Global Select Market under the symbol “FITB.” Fifth Third Bank was
established in 1858.
Copyright © 2015. Fifth Third Bank, Member
FDIC, Equal Housing Lender, All Rights Reserved.
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version on businesswire.com: http://www.businesswire.com/news/home/20151216005694/en/
Fifth Third BankLaura Trujillo,
513-534-4361Laura.trujillo@53.com
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