Ready or Not, EMV Credit Cards Thrust Onto Retailers

The liability for fraudulent transactions made with counterfeit or stolen credit cards also will shift from the banks to merchants.

Several surveys, including one by CreditCards.com, indicate that 60 percent of consumers still have cards only equipped with the magnetic strip and not the chip.

"You are responsible because you did not insert it into the correct spot where it reads the chip", said Pearson.

The chip will essentially eliminate this mag strip on the back of your card.

The new system is called EMV, which stands for Europay, Visa and Mastercard, which incorporates the use of a credit card chip, essentially creating a new checkout routine being called the dip instead of the swipe.

For now they will continue swiping credit cards the way they always have, but the owners of Henkle's Hardware in Webb City will eventually have to make the switch to the new chip enabled card reader.

However the good news is that chip-based credit cards are slowly starting to roll out to users in the US.

The deadline for gas stations to upgrade their systems for the chip enabled cards is 2017.

Home Depot, Walmart and Target are amongst the large retailers that already have changed the processing to chip card processors.

In talking with members, NRF has found that many retailers are taking further action beyond implementing chip cards to protect consumers' financial data.

Historically, issuers of cards such as credit unions or banks covered the costs. On Thursday, the USA credit card industry and merchants faced a deadline on Thursday to make progress with the transition to cards with chip technology, EMV technology.

First Niagara will begin rolling out the new cards in October and hopes to have everyone upgraded by early 2016.

The new terminals cost from a few hundred to more than $1,000 a piece; money that's not in every business's budget.