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Small businesses lawsuit Against Credit Card Chip Readers

Small businesses take lawsuit to credit card companies over credit card chip readers

(CNN) – A lawsuit is moving forward over the new credit card chip readers rolled out at many stores across the nation.

A judge is allowing small businesses to sue major credit card companies for forcing them to use the devices. Businesses say the machines are expensive and don’t fully protect from fraud.

credit card chip readers

They are also accusing credit card companies of penalizing them if they don’t upgrade to the new chip readers.

Credit card companies, banks, and major retailers came up with the terms for businesses to use the chip readers.

MasterCard said it has a strong case to support the chip readers and expects to win the case in court.

The lawsuit, at this point, is not a class action. But, if it is granted class action status, eight million small businesses could make that lawsuit a $6 billion case.

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Source: Small businesses take lawsuit to credit card companies over chip