As stores upgrade for new microchip cards, mobile payments also making gains

[Omaha Steve]

http://www.omaha.com/money/as-stores-upgrade-for-new-microchip-cards-mobile-payments-also/article_f238e622-ebe8-52e6-af6e-ed2d90de3e71.html

POSTED: THURSDAY, AUGUST 27, 2015 1:00 AM | UPDATED: 9:40 AM, THU AUG 27, 2015.
By Cole Epley / World-Herald staff writer

As merchants across the U.S. upgrade their payment systems to accept new microchip-embedded credit and debit cards, they’re setting themselves up to take other forms of payment, too, including Apple Pay, tap-to-pay and the just-announced Samsung Pay.

Many of the new systems that accept chip cards with so-called EMV technology are only a software upgrade away from being able to accept mobile wallet payments, such as Apple Pay.

EMV is the technology merchants and card issuers must adopt by Oct. 1 if they want to avoid being on the hook for fraud committed using counterfeit cards.

Because cardholders’ liability is limited under federal law, merchants and banks are each exposed to losses under fraudulent circumstances; after Oct. 1, whichever party is least compliant with the new standards will bear the burden of fraud liability. In other words, there’s incentive for banks to issue new chip-embedded cards and for retailers to upgrade to the machines that will accept them.

FULL story at link.

[onehandle]

1. Apple Pay is safer than chip embedded cards.

I use it weekly at a number of retailers and grocery stores.

...corporate security experts, credit card companies and privacy hawks said Apple's plan for consumers to tap their phones or smartwatches against a reader, instead of swiping a plastic card, appears to be more secure than traditional payments systems.

http://www.wsj.com/articles/whys-apples-tap-to-pay-beats-credit-cards-1410394757