Banks, Retailers Clash Over New Chip System

It’s slow and couldn’t come at a worse time for retailers, with holidays approaching, and many are putting off the changeover, reports the New York Times. Retailers also complain the new system lacks a key feature – PIN verification – that’s standard in Europe and would specifically protect retailers, as opposed to banks. But Banks say the new system is adequate while retailer security systems often are not. Small business has its own complaint: The cost of the upgrade will be a huge hit relative to their revenue. Meanwhile, retailers of all sizes continue to complain about the cut that banks take from each card transaction. According to one retail industry source, last year, merchants paid about $61 billion in “interchange fees,”  more than twice what they paid to cover fraud losses.