This story originally appeared on www.kbzk.com.
If you haven’t received a credit card yet that has a ‘Smart Card’, you soon will. Credit card companies are sending out the new credit cards to help prevent widespread fraud.
Retailers have until October 2015 to change over to what is known as EMV technology. EMV stands for ‘EuroPay, Mastercard and Visa, and have been used since the middle 1990s in Europe. If the retailer doesn’t utilize the EMV Chips, the fraud liability will be shifted from the credit card companies to the individual retailers.
“What most people don’t know is that 80% of credit card breeches is actually to small businesses,” said Katie Mansfield of Frontline Processing in Bozeman. “So really, the people here in Montana are the people that are at risk.”
Each time the chip is used, it creates a unique code that prevents the credit card information from being reused. Major retailers in the United States have been in the crosshairs of fraudsters over the last few years. This change is aimed to limit the exposure of fraud to the consumer.
While the technology does help take care of some of the fraud in the point of sale purchases, your card is still at risk if you buy online.
According to Trustwave Global Security, a breach or credit card fraud can cost a bundle of money. The average cost for a replaced card is $182. The cost for a forensic audit on a business averages about $50,000 with the total cost of the average data breech costing between $141,000 and $232,000.