It was one year ago Saturday that merchants faced an Oct. 1 deadline to switch to gadgets that read credit cards with chips in them — or face the risk of eating fraud charges themselves. These are the cards you “dip” in the checkout terminal and leave there for a bit, as opposed to swiping them down the side.
What’s happening? Well, it’s going more slowly than anticipated, industry groups say. Some 44 percent of merchants have chip terminals but only 29 percent actually use them because of delays activating the service, according to the Strawhecker Group, a consulting firm in the payments industry.