It's meant to make using credit cards safer. The chip inside the new chip cards generates a unique, one-time code each time the consumer makes a purchase. Of course, in order to accept it, merchants will need to do a little shopping.
"Definitely, you're going to need a point-of-sale device, and then you're going to need the software within that point-of-sale device that effectively allows you to accept those chip card transactions," says Deanna Karhuniemi of Chase Commerce Solutions.
"One of the things from a couple of businesses we've heard is 'How are we going to afford this?'" says Carlo Scissura, president and CEO of Brooklyn Chamber of Commerce.
While some companies are offering the devices for free, on the whole the price will range. Think of it as buying a car, you can get the base model.
"If they are looking for something that can be attached to their iPhone or through their tablet they can be looking anywhere from $50 to $150 on the low end," Karhuniemi says.
You could also opt for upgrades, to the tune of several hundred dollars per unit depending on what you want them to do.
It's important to note that for the moment accepting chip cards isn't mandatory. No one is forcing small business owners to spend the money to upgrade their technology. But not doing it could end up costing you far more.
That's because of the liability shift that will go into effect on October 1. It's one of the topics being addressed during Visa's Small Business Chip Education Tour.
"If a merchant cannot yet accept a chip transaction and process a chip card, they may be liable if there's any fraud that happens at their business," says Stephanie Ericksen, vice president of Global Risk Products for Visa.
In other words, rather than credit card issuers absorbing the loss, if you choose to keep swiping new chip cards the old way and someone uses a fraudulent card at your store?
"Then hey, it's on you," says Brooklyn Borough President Eric Adams. "And people need to know that there are options, but the best option is to make sure that you lock up your transactions the right way."
Some merchants, however, say it doesn't feel optional at all.
"It is mandatory or else my business is liable and I could lose my business," says Elissa Olin, owner of Green in Brooklyn.
The problem, says Scissura, is many businesses don't even know the change is coming.
"They are so busy trying to survive and keep their business running that they don't understand these things," he says.
And that is alarming, he says, because a few expensive chargebacks could put a small business out of business quickly.
Visa has put together a collection of chip-related tools and resources to help prepare merchants for the upcoming change. For more information, visit www.visachip.com/businesstoolkit.