“Big legal burden” about to hit small businesses

Washington Post:

American consumers are beginning to receive in the mail new credit cards that add a security chip to the traditional magnetic strip that processes their payments. The hope is the new cards cut down on credit card fraud but many small businesses do not appear ready for the change….

Businesses will need to install new card readers (by October 1) to process the information on the chips. Those that do not have the new technology in place by then will be on the hook for any security lapses or fraudulent transactions, instead of payment-processing firms.

[M]ore than 28 percent of small business owners who process payment cards are not even aware of the new technology or how it affects their business.