Merchants required to accept chip-enabled cards by Oct. 1

This Wednesday, June 10, 2015 photo shows a chip credit card in Philadelphia. Even as an October 1 deadline approaches to switch Americans over to credit cards embedded with chips, the vast majority still does not have the new cards and only some are using them as intended, a new Associated Press-GfK poll shows. (AP Photo/Matt Rourke)

AUSTIN (KXAN) — If you’ve recently received a new credit card in the mail, your card might be a chip-enabled credit card. Due to recent high-profile cases of credit card fraud, many credit card companies have made an effort to move to chip cards but according to a new report, more than 6 in 10 U.S. credit cardholders still don’t have a chip-enabled credit card.

Thursday, Oct. 1 is the self-imposed deadline imposed by the credit card industry to make sure merchants are able to accept the chip cards (also known as EMV cards). The deadline was announced almost two years ago in an effort to improve data security and close the gap with other countries, particularly in Europe and Asia, which have used the chip cards for years.

If the merchants don’t have the updated point-of-sale equipment to accept the chip cards, they’ll be responsible for fraudulent transactions instead of the bank. >While the chip cards are more secure, many merchants say they haven’t changed out their system due to time and cost. Fiserv estimates that only 5-10 percent of U.S. retailers are ready to accept EMV cards.

The report, conducted by Princeton Survey Research Associates International (PSRAI), also concluded that credit cardholders with an annual income over $75,000 are more than twice as likely to have an EMV card as people in a lower income bracket.

After the 2013 data breach at Target, where nearly 40 million customers had credit or debit card information stolen, the retailer decided to setup all of their stores to accept third-party chip cards at checkout. Target started accepting the chip cards this summer.

“Our teams have been working for years to bring guests this secure payment technology, and we’re excited to be among retailers leading the industry in bringing it to the U.S.,” said Target in a press release.

KXAN News reached out to several grocery store chains in Central Texas to see the status of their machines.

H-E-B said they’re currently under contract negotiations for the new technology but they don’t have a timeframe on when the system would be in place. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. If you see an inappropriate comment, please flag it for our moderators to review.

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