Chip-enabled credit cards require businesses to make upgrades

Instead of a swipe, get ready to insert your credit card into a new device.

All credit cards will soon be equipped with a computer chip for added security. It’s technology that’s been used in Europe and Asia for years.

“They slide it into the machine, there’s a slot for them, and then they have to either enter a pin or it verifies the chip,” said Erin Hyland, assistant store manager at the Lululemon on El Paseo in Palm Desert.

The Canada-based fitness apparel chain installed chip-reading machines in its stores months ago.

“We have a lot of Canadian guests and snowbirds and they’re really excited we have the technology down here now too,” Hyland said.

It takes a few seconds longer to read the card, but credit companies say it’s for your protection.

The chip creates a unique code for each transaction and doesn’t transmit personal information.

“Anything to protect our guests, especially as the holidays come and people purchase more,” Hyland said.

Beginning October 1, businesses that aren’t chip-ready could be held liable for any fraud on your card.

Many local businesses here in the valley haven’t made the transition yet.

“We have to get new credit card processing systems. It’s a little expensive, but we can’t do anything about it,” said Claudio Marfia, general manager at Il Corso in Palm Desert.

Most credit cards won’t be updated until 2016, so you can use your old card until it expires.

But don’t expect the change to protect you 100% from fraud.

Thieves can still use stolen credit card numbers for online or phone purchases.

“In the end I think it’s the same. The fraud will always be there, they’ll just find new ways,” Marfia said.