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June 18, 2015

New chip credit cards putting squeeze on small businesses

  • The switch to new chips in credit cards poses a threat for small companies that can't get the volume discounts on new equipment that big retailers get.
  • By JOYCE M. ROSENBERG
    AP Business Writer

    NEW YORK — New credit and debit cards with computer chips are putting the squeeze on small businesses.

    The cards being rolled out by banks and credit card companies are aimed at reducing fraud from counterfeit cards. As chip cards are phased in, magnetic stripe cards, which are easier for thieves to copy, will be phased out. Businesses of all sizes face an Oct. 1 deadline to get new card readers and software that can handle chips. Most estimates of transition costs for small companies vary from the low hundreds to tens of thousands of dollars due to the wide range of equipment used.


     
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