New Microchip-Embedded Credit Cards Pose Risk to Businesses Without Upgraded Terminals


Staten Island, N.Y. (Oct. 1, 2015) – Beginning today, the credit card industry is taking a huge step forward in battling fraud,             posits Victory State Bank, Staten Island’s only community-based business bank.

The NYC Department of Small Business Services explains that major credit card companies are migrating from outdated magnetic stripe credit and debit to cards embedded with microchips. This technology, also known as EMV, is a safer form of payment for buyers and sellers alike, safeguarding against fraud and counterfeit. Many consumers already have chip cards in their wallets or will be getting these cards soon, but reading chip cards requires new technology.

Victory State Bank is advising business owners to upgrade their card-processing terminals, if they haven’t done so already, in order to protect their businesses from some negative consequences resulting from fraudulent EMV/chip cards transactions.

As of today, the liability for certain types of fraudulent transactions will shift from banks to businesses that do not have the technology to process chip cards.

The liability shift, according to NYC Small Business Services, means that if a customer pays a business using a fraudulent EMV/chip card and that business can only process cards with the magnetic stripe, then that business could be liable for the fraudulent charge. A business must upgrade to EMV-compatible terminals to be able to accept cards with EMV chips from customers.

Businesses should contact their payment processors about the process for upgrading their devices to be EMV capable and to purchase or upgrade to an EMV enabled terminal.

There is no penalty if businesses haven’t yet upgraded by today, but you risk becoming a target for fraud if you do not upgrade by the deadline. Customers can rely on a more secure transaction by choosing vendors that permit chip payments. Upgrading to EMV-enabled devices allows you to adapt to the next trend of payment technology.

Visit the Small Business Administration online for information about the migration to EMV chip card technology and how it relates to your small business.



About Victory State Bank


VSB Bancorp, Inc. (OTCQX: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at


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