During the fall of last year, the credit and debit card market were in a tizzy about the new chip technology that was bound to be implemented in all credit and debit cards in the United States. The chip was made available in the middle of last year for all companies to ensure that their cards would be using this new service. The largely touted chip has failed to take off in the manner it was supposed to, or even expected. The new chip that was to be inculcated in the common card design was primarily fused into cards for the sake of security concerns. New chips would make transactions much safer for the customer.
The lackluster response
The United States of America ruled that the chip must be made an imperative by the 1st of October 2015. However, there has been only a mere 37 percent of merchants that have registered and use the chip-based cards for transactions. There were penalties imposed for merchants dealing in non-chip based cards. If companies did not register the chip as the new official transaction, they would be labeled as fraudulent. However, the move has not been able to raise any support of the people.
Payment processing and technical assistance have been one of the major issues that have bogged down the process of transferring the cards into a chip-based system. Even though there seemed to be ecstatic support for the system, most merchants had a problem with implementing the chip technology into cards as it slowed down transaction time and has also created quite a stir amongst consumers for the inconvenience it has caused them. There have been various technical glitches that have been occurring in the system that do not see an early solution. These are the main reasons why most cards still operate without chips.
A gradual process of change
Most merchants chose to hold out on the chip facility until the holiday and sale season, as it would be a monumental task of handling an additional burden of transaction inconvenience amongst consumers especially in the time of such a large sale season, and the increasing dependence of people on internet shopping. However, many experts say that the market will soon change this year during a non-sale season. Consumers and sellers are slowly witnessing the benefits of the chip system in credit and debit cards and are gradually changing their views, especially consumers and merchants that have fallen prey to the card scams.