one is an emv reader. which accept the credit card. >> right. >> the second is your point of sale system that works with the reader. if you have those two things, you're set. those who have it have an emv compliant point of sale system. the key thing is to have the reader which accepts the new type of credit cards. the ones that you just slide, those don't work anymore. >> don't you just buy an emv reader? >> yeah. you can. what if you have three? talk about training your employees. the card has to go in there and sit there is for five to ten seconds. you don't want that thing sitting there waiting for ten seconds. so it's a big deal for small businesses where budgets are tight. >> that's the reader. there's the fact a lot of p.o.s. systems don't read it. >> those who have traditional point of sale systems or cash registers, that is a problem. they're traditional, hard to update and you need new ones. it's like having a tez la. you hear the other car manufacturers have to go back. tesla says we updated it

and if you look at where emv has been deployed around the world, losses come down dramatically. in europe it took about eight years, losses dropped 85% and in canada took half at a time to come down by 7 3%. there's high hopes it leads to the same kind of thing. >> that small shop who doesn't buy -- how much entry level device, would she have to spend? >> typically the small shop is likely not paying for the device himself or -- >> just being issued by credit card. >> but that said, october 2nd, she doesn't have it yet. there's no penalty or risk on my end, right? >> that's right. even if you look at the global worldwide numbers and other places where such cards are prevalent, the number of cards that have chips in them is close to about 45 to 50%. that's not prevalent. you go like you said, you can use the imagimagnetic side. most of our devigss take both. >> some of the places transitions, you swipe it and it says, oh, actually you have a chip card, you have to put it in the chip thing. even though you already tried to do an action to pay, another hurdle. is that just to train

issuer or payment processer, could be held liable. >> if a merchant doesn't have a terminal that accepts emv cards and there's an instance of fraud there, then that merchant is likely to bear the liability and that's a big change from the past. >> another big change? no more swiping the card along the magnetic strip. instead, you'll dip, so the terminal can read the new chip. you'll still have to sign or enter a pin number for your transaction, but what you do will depend on the verification method that is tied to your new chip card, not whether your card is a debit card or credit card. that's the change. >> i know they've been using this technology overseas and credited with cutting back on fraud but part of the reason for that is our cards were so much easier to hack. if we all raised to the same standard, give us the extra protection. >> it will definitely give us extra protection at the brick folks are saying it may not give much protection when it comes to online card fraud and we see an increase in that several billion dollars a year in the cost of that. so we are going to see some pro

. >> only 63% of americans nationwide are using emv cards and 47 percent of retailers are expected to accept them. >> reporter: that's changing. starting thursday, october 1st, more americans will have emv or chip cards and stores will have the right equipment to accept them. >> by october 1st, retailers need a migration to emv-equipped point of sale terminals. that means that they're on the hook for any fraud if they don't migrate by that date. >> reporter: why the switch? chip cards are safer and more secure than magnetic stripe cards. after the target data breach, the credit card companies decided it was time to make their cards harder to hack. >> reporter: you're less vulnerable to having your data taken than you would with a regular magnetic stripe card. >> instead of passing your credit card information to the merchant, what it does is it passes a unique transaction code that the merchant gets and if a hacker gets into and tries to reuse, they won't be able to use it. it's basically like stealing an expired password. >> reporter: the cards are tough to copy. >> they make it hard

. >> reporter: known as emv technology. it helps prevent thieves from producing copycat cards. >> instead of passing your credit card information to the merchant, it passes a unique transaction code that the merchant gets and if a hacker gets in, they will not be able to get in and use it. >> reporter: bank have been sending out millions of new credit and debit cards. and analysts estimate that more than half of u.s. consumers have not received the replacement. regardless, the consumer's liability for fraudulent purchases has not changed. >> banks have not gotten enough of the cards into people's hands and there's just a lot of confusion. >> reporter: and the new terminal that's the retailers must install cost a few hundred to more than a thousand dollars. a price putting a strain on smaller businesses. >> some merchants are not going to bother with it because they don't necessarily think that it is worth their money. >> reporter: retailers that don't install the new terminals by thursday could be liable for fraudulent tran

these chips are based on a global card payment standard called emv, stands for euro pay mastercard visa. it makes every transaction unique, making it harder to counter credit cards and fraud. >> it's a benefit for me that i'm not sure the swiping is actually tracking my information. >> reporter: most of us have already gotten our chip cards and maybe seen the readers in big box stores like target. >> now the card stays in there. if you're wond ering if it's going to come back out. >> reporter: instead of a quick swipe, the machine will prompt you to place your card inside and leave it till it tells you to take it out. >> it's a little slower. that's even what the clerks have said at the register. i notice it takes a lot longer. first i left it in and then pulled it out and had to start all over. >> reporter: credit card fraud has doubled in the u.s. over the last 15 years and in other parts of the world that already have these cards, credit card fraud is falling. >> if they put a fingerprint on it, even better. >> starting thursday you can expect to see all major retailers using these c

they will have to insert the cards because of a new security chip called an emv.s ai velshi describes they are decide to protect you against fraud. >> you traveled to calendar canada, europe, around the world, most people have this chip and they use a pin or sign. the system is called emv, stands for europay, mastercard and visa those are the companies that provide the cards. they say the move is to protect consumers against fraud. it also protects those card issuers against responsibility. currently bangs and card companies take the hit for almost all fraudulent transactions retailers will be forced to pay. the micro chips are harder to physically copy than the magnetic stripes in use. they create a unique transaction code for every purchase this limits the amount of personal data exchanged. if you steal a card, no get other information. instead of your social security numbers, hackers get this useless one-time-only transaction code. they can't keep using it. they still use the card, a hacker wican still get it. credit card fraud costs $16,000,000,000 here in the

. >> reporter: the new cards have a computer chip similar to the emv or euro pay system largely usedn europe. >> there's coding in the chip, it's embedded in the credit card. >> reporter: edith lee says the which i which i happen -- the chips are more difficult for hackers to duplicate. the chip verifies your credit. >> it creates a unique code that only is tied today that particular transaction. >> reporter: customers say they like the idea of more security. >> my american express and mastercard both have the chip. i've used it as a mcdonalds and walgreens. >> reporter: but don't expect to see every pay station using the chip technology by next week. >> probably less than 30% of merchants and banks are ready to go. visa is i think 20%. >> reporter: one problem for small businesses is many providers are charging hundreds of dollars to change over. >> i think a lot of restauranteurs don't feel safe making the change. >> many consider this being a step in the right direction. but be aware these chips do not protect your online services when you enter a card number and gas stations don'

retailers begin switching over to machines that will read credit cards with that emv chip.ad of swiping card, you dip them into the machine. they're designed to make cards harder to hack. >> instead of passing your credit card information to the merchant, what it does is passes a unique transaction code that the merchant gets and that if a hacker gets into and is tries to reuse, they don't be able to. basically like stealing an expired password. >> if you don't have one of these chip cards, you'll probably get one by the epd of the year. >>> new report shows millions of americans do something for halloween this year. the average person will spend about $75 on the holiday, down about 4% compared to last year. estimated 69 million americans expected to dress up. 20 million plan to dress up their pets. of course the kids will be dressed up, even if the babies are sleeping. the biggest amount of money expected to be on candy for trick-or-treaters. >>> pumpkin spice latte at starbucks is has new competition. latest drink is the toasted graham latte. espresso, steemd milk, topped

>> well, there's a new card, it's called the emv card which refers to euro pay master card visa. the chip card referring to a microchip that actually enables something called dynamic authentication. each transaction gets a separate number. this is all aimed towards fraud protection. there's 120 million of the cards in circulation now in the united states. expect it to increase to 600 million by the end of the year that does require the point of purchase credit card transaction machines to change a bit. so we'll go from swiping it to something known as dipping. because that is happening dynamically it will take a little bit longer, but you'll start to see this at costco and walmart, everyone is compliant. everyone needs to be by october. it will be interesting to see if we make the dates but slowly it will make the transaction. it will be more slow for debit cards. >> that's for putting the cards in for the chips -- >> well, the liability is going to switch to the merchants so consumers don't have to do anything. it's the master card and visa that are trying to adopt the new techn

a while, but the chip you're talking about on the front of the credit card, it stands or is called emv, which stands for euro card mastercard, visa, the credit card companies behind the new technology. experts say the chip will reduce credit card fraud significantly because the magnetic strip on the back of your card has the same information as the front of your card. so therefore it's very easy to skim the data off the strip and then place it on a brand-new card. but each time you buy something using the chip technology, your credit card gives off a unique signature which is much more difficult to counterfeit. and the hope is that would stop criminals from hacking into retailers' websites and compromising millions of credit card numbers. listen. >> the credit card companies want this because it will reduce their liability, meet their insurance premiums lower and pass more of the liability on to the retailer. >> of course, the retailers are all supposed to be on board with the new chip technology by the end of this week, but that's not going to happen. in fact, experts say for now only

. >> reporter: known as emv technology the chips help prevent thieves from producing copycat cards makingonal magnetic strip cards. >> instead of passing your credit card information to the merchant, what it does, it pas passes unique transaction code that the merchant gets and if a hacker gets into and tries to reuse they won't be able to use it. it's basically like stealing an expired password. >> reporter: for the past few months banks have been sending out million of new credit and debit cards. analysts estimate more than half of all u.s. couldn't sum mers still haven't received their replacements. regardless, the consumer's liability for fraudulent purchases does not change. >> we're swiping and signing. >> banks haven't gotten enough of the cards into people's hands and overall there's just a lot of confusion. >> reporter: new terminals that retailers must install cost a few hundred to more than a thousand dollars. a price putting a strain on smaller businesses. >> some merchants just aren't going to bother with it because they don't necessarily think that it's worth their money. >>

a microchip that uses emv technology. >> what that does is generate a new unique code every time the card is used. >> reporter: in the past thieves could make physical copies of the traditional magnetic strip cards, the new chips make that much more difficult. >> they can't create a counterfeit card, which is two-thirds of the fraud we see in the system. >> reporter: if a thief tried to use the chip's unique transaction code. >> it would be worthless like using an expired pass code. >> reporter: but these cards require a learning curve at the checkout line. >> consumers will have to learn how to forget to swipe and dip. >> reporter: that means inserting the end of the card for several seconds. takes up to ten seconds longer to process than the old swipe method. it's a major change for businesses too. on october 1st merchants not card issuers will be responsible for fraudulent transactions if they don't upgrade their payment terminals. >> these new in-store terminals can be very expensive to handle these chip cards. >> reporter: up to $1,000 per devi device, which can add up quickly e

. >> a lot of changes coming for payments at the end of this year, whether you are talking emv or samsungandroid pay, apple pay certainly will have a larger user base to work with after this weekend. the iphone 6s and 6s plus will be out. how does this at all shift the playing field for braintree and for pay pal as well as more players get into this payment business? >> well, what you really are starting to see is that, you know, we're in the coming of age of the digital wallet. as huge a business as pay pal is, as the world's most widely used custom digital wallet, for the last 15 years digital wallet has been nice to have. as you move to mobile, where people just aren't willing to go enter a lot of information on a tiny little touch screen, consumers are demanding much more seamless experiences and in order to deliver that, you really need to have both a consumer network and a merchant network. that's where we built pay pal one touch, which is delivering huge improvements and conversion rate. as much as 50% or more improvement in conversion on native mobile. we've rolled it out to more

. >> reporter: they are called emv card with a built in computer chip for added security. instead of swiping, customers have to dip them into these new terminals. >> with the other one you swipe it, this one you have to put the card, wait a little will until he tells you then you can remove it. >> reporter: it creates a unique code for every transaction and does not transmit personal information. that is supposed to protect consumers like a data breach like the one target saw in 2013. because the information is worthless to hackers. the visa and master card set thursday for deadline for stores to have the new terminals or face new consequences. >> they will bear the liability, in case of credit card fraud, and that is a big shift because in the past banks have born most of that liability. so that is a big deal for merchants. >> reporter: recent poll find only 27 percent of retailers have the new more expensive card processers and another survey says 64 percent of credit card users haven't received the new chip card just yet. eric brown recently got his in the mail. >> you

. >> reporter: it's an emv card with a built-in computer chip for added security. into these new terminals. they don't swipe them. >> the other one you swipe it so quickly. with this unyou have to put the card and wait a little until he tells you to remove it. >> reporter: it creates a unique code for every transaction and doesn't transmitt personal information and supposedly protects us all from a data breach like that one at target back in 2013. because the info is worthless to hackers. >> you have to go straight in the chip in the front. >> reporter: visa and mastercard set thursday as the deadline for stores to have the new terminals or face new consequences. >> they will bear the liability in case of credit card fraud and that's a big shift because in the past, banks have born -- borne most of that liability. that's of course a big deal farmer channels -- for merchants. >> reporter: but only 27% of retailers have them and another survey says 64% of credit card users have not received the new chip cards yet. eric brown recently got his in the mail. >> these see