14 Dec. 2015
What’s That Chip?
We either have or will have very soon a credit or debit card. It’s something that comes natural with age these days. But how much longer will it be before they are a little safer? Well the answer is, right now. The little micro chip that is in one of the corners on the card? That is what just might save you from losing some Money. There is only a few problems to this, however to every issue, there will be answers.
First off, as of October or 2015, all companies were to start using a chip reader machine. But according to NBC News, one consumer, “Edgar Dworsky, founder of the website ConsumerWorld.org, wondered why he's rarely asked to dip his smart cards, despite an Oct. 1 "deadline" for retailers to adopt the new standard”. But later on, NBC went on to say that “a lot of companies will tell you that they aren’t ready for the chips, but that should eventually change”. And that is true, as America has a demand for the safety of their citizens, everything is working out.
But some companies that have no control, however, are the ones that are getting is the worst. Netflix, the popular app for your phone, tablet or laptop for watching TV shows and movies, got it worse than most companies. “Netflix chief Reed Hastings blamed changes at credit card companies for subscribers leaving the service as the company reported disappointing growth figures on Wednesday”. Netflix has no say with which way of payment they charge their customers. The only option they have is the “manual” way using the numbers and security code. But, with these new chips, Netflix “had predicted US subscriber growth of 1.15 million users; in fact it had added only 880,000 in the third quarter of 2015, down not only from its prediction but from its third-quarter 2014 increase of 980,000. The company’s stock price plummeted nearly 12% on the news and then bounced back somewhat”(the guardian). Though, with more chips in more cards, the supply of customers that Netflix lost, will be replaced soon.
But the question to answer is to what good does this do for the economy? "These new and improved cards are being deployed to improve payment security, making it more difficult for fraudsters to successfully counterfeit cards," says Julie Conroy, research director for retail banking at Aite Group, a financial industry research company. "It's an important step forward"
(credit card). So all-in-all, the credit card chips are there to protect our identities but for the most part, will not change the economy. Companies like Netflix will go up and down so long as they are around. Once people know how to use the chip cards, everything will be fine.
"8 FAQs about EMV Credit Cards." CreditCardscom News. Web. 15 Dec. 2015
"Few Retailers Using 'Chip' Credit Card Security Feature for Holidays." NBC News. Web. 15 Dec. 2015.
Theilman, Sam. "Netflix CEO Blames Credit Card Changes for Subscribers Leaving Service." The Guardian. Web. 15 Dec. 2015.