The announcement comes in the wake of Visa and MasterCard shifting account holders over to chip-based credit cards. The new reader is set to debut on September 30 and will be available in the US, alongside the UK and Australia, where PayPal has previously launched chip-card reading dongles.
Visa and MasterCard have already started replacing magnetic stripe credit cards with chip-embedded cards. However, starting on October 1, 2015, the two credit issuers will no longer cover the costs of fraud for merchants who have not upgraded their point of sale (POS) systems to securely process chip cards. As a result, all fraudulent charges resulting from chip card transactions on antiquated POS systems will be absorbed by the merchant.
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