Credit card giants sued over chip readers

News

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.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

LKQD Outstream

Trending Stories

news-app-download-apple-350x50news-app-download-android-350x50