New “chip cards” debut in Jacksonville

By Gary Scott on September 23, 2015 at 6:18am

Debit cards with a new security feature are starting to make the rounds in Jacksonville.

Jacksonville Savings Bank recently switched to cards that are embedded with a microchip. Known as “chip cards” or “EMV cards”, they create a new system of card recognition and are intended to prevent card fraud, according to the bank’s senior vice president, Laura Marks.

Marks says there have been victims of card fraud at Jacksonville Savings Bank, and that the bank moved to get the new cards introduced to customers as soon as possible, issuing them out at the end of August. She says all customers now have the debit card with the chip.

“It really creates a whole different system of recognizing the card. It increases the interoperability of the cards so that there’s two way communication going on between the terminal, the card, the processor. It makes the transaction much more secure,” Marks says.

“We’re all familiar with the breaches that have occurred in the past, and this is the effort to prevent those breaches from occurring in the future.”

Marks explains currently, if fraud happens on a card, the bank takes the loss, regardless of the situation. However, she says starting next month, things will change.

“In October, if a bank has issued an EMV chip card and the merchant does not have an EMV-ready terminal and fraud is committed with a fraudulent card, then the merchant actually is going to be the one that takes the loss, not the bank,” she says.

“So, the way MasterCard and Visa have approached it is to create an incentive for all of the merchants to implement terminals that are EMV-ready and for banks to issue EMV cards. But, at this point, it’s not required.”

Marks adds that the transition to EMV cards might take years. She says most credit card companies have already issued the chip cards, allowing American consumers to catch up to the rest of the world.

“If someone inserts their card into the EMV slot and it doesn’t work, they just need to slide the card. If the merchant has the terminal set up for EMV, and someone who has an EMV card slides their card, then the terminal will instruct them to insert it,” she explains.

You can find out more information about businesses in Jacksonville that can accept chip cards by visiting a link to the Jacksonville Savings Bank website.

We contacted several other major Jacksonville banks, who said as of the time of writing this story, that they did not have the chip cards in place, but have plans to do so.