Credit card giants sued over chip readers


NEW YORK (WNCT) – A lawsuit is moving forward over those credit card chip readers you see at some stores.

A judge has allowed small businesses to sue major credit card companies for forcing them to use the chip readers. Businesses said the machines are expensive and don’t fully protect them from fraud.

They also accuse credit card companies of penalizing them if they don’t upgrade.

Credit card companies, banks and major retailers came up with the terms for businesses to use the chip readers. Mastercard said the company has a strong case supporting the chip readers and expects to win in court.

The lawsuit at this point is not a class action, but if “class action” status is granted, eight-million small businesses could make the lawsuit a six-billion dollar case.

WNCT-TV 9 On Your Side provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s