should be interesting to see how the insurance companies respond to this. It seems like it is more of a “business” decision to not upgrade to the chip readers and those type of risks are usually not insurable… I am sure though that a few carriers will start offering this coverage.
An exclusion to most commercial policies would make sense. The potential damage compared to the cost is pretty significant from what I’ve seen, especially if you look at places with large breaches like Target.
problem is that even though retailers have purchased the new machines to read chips, their credit card processors still haven’t updated their systems yet. I know that from personal experience for the machine we have in our office. my credit card processor still hasn’t updated their systems yet and I spoke with several merchants that use different credit card processors and its the same with them.
That’s interesting, you should ask them who is liable if fraud occurs. The PCI language does not mention the card processors, so it may still be the retailer, but I’m not sure.
People tend to be very price conscious when it comes to credit card fees. They most likely aren’t asking the correct questions when approached with new vendors. Many CC companies offer fraud protection with their service that transfers some liability back to them. Bottom line: READ THE SMALL PRINT
should be interesting to see how the insurance companies respond to this. It seems like it is more of a “business” decision to not upgrade to the chip readers and those type of risks are usually not insurable… I am sure though that a few carriers will start offering this coverage.
An exclusion to most commercial policies would make sense. The potential damage compared to the cost is pretty significant from what I’ve seen, especially if you look at places with large breaches like Target.
problem is that even though retailers have purchased the new machines to read chips, their credit card processors still haven’t updated their systems yet. I know that from personal experience for the machine we have in our office. my credit card processor still hasn’t updated their systems yet and I spoke with several merchants that use different credit card processors and its the same with them.
That’s interesting, you should ask them who is liable if fraud occurs. The PCI language does not mention the card processors, so it may still be the retailer, but I’m not sure.
People tend to be very price conscious when it comes to credit card fees. They most likely aren’t asking the correct questions when approached with new vendors. Many CC companies offer fraud protection with their service that transfers some liability back to them. Bottom line: READ THE SMALL PRINT