Join our Waitlist for Expert Advice!

Square Rolls Out New Reader for Chip-Based Credit Cards The new reader is available for pre-sale, as the U.S. prepares to say goodbye to magnetic-stripe cards.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Square
Square Reader for chip cards.

Square is ready to help out – and cash in on – small businesses preparing for the death of the swipe-and-sign credit card in 2015.

Starting today, you can pre-order the Square Reader for chip cards. The new reader, which will ship in spring 2015, is the first Square device to deal with EMV technology, meaning it has the ability to process payments made with credit cards embedded with computer chips. The $29 reader will accept both magnetic-stripe and chip cards, and can be used with iPhones, iPads and Android devices.

The Chip Card Accessory for Square Stand is also now available for preorder for $39.

"We've been working on our EMV solutions in anticipation of the nationwide switch to new chip-card technology," a Square spokesperson says.

Related: Square Just Unveiled Something Coffee Addicts Have Been Dreaming About Forever

The urgency in the nationwide switch is due to a "liability shift" set for October, 2015. The liability shift moves the responsibility to deal with fraudulent chip cards from banks to businesses without the technology to read chip cards.

"[S]ay, for example, a fraudster buys $30 worth of hot sauce from a restaurant with a counterfeit EMV chip card," Square explained in blog post from July. "If the restaurant doesn't have a chip card reader to process the transaction, it could be on the hook for the $30."

Banks are pushing for the switch to EMV technology because cards with chips are more difficult to counterfeit than the traditional American credit card with a magnetic stripe. The U.S. is also way behind on the switch to EMV -- most of the world already uses chip cards, a fact that has helped boost credit card fraud in the U.S. Half of all credit card fraud occurs in the U.S., despite how the country only accounts for a quarter of the world's credit card use.

Apple Pay already uses EMV technology. PayPal Here and Intuit Pay already accept chip cards.

Big businesses such as Home Depot, Jimmy John's, Michaels and Target have made headlines for credit card hacks in the past year. Small businesses are also at risk -- and less likely to have security plans. The nationwide switch to EMV technology can help reduce these risks in the future.

Related: The Payments App Millennials Swear By

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Money & Finance

Customers Have a Favorite Payment Method — But 30% of Businesses Don't Accept It. Are You Driving Business Away?

This article examines the surprising gap between what consumers want in payment options and what small businesses currently offer. It also provides strategies for small business owners looking to adapt to these preferences and enhance customer loyalty.

Leadership

Could We Have The First Native American Woman Governor? DEI Expert Weighs In On What Allyship Should Look Like If History Is Made.

We can all learn more about what it means to be a better ally for those who are the "firsts" in their space. Here are three strategies around allyship this DEI expert recommends to her diversity, equity and inclusion (DEI) consultancy clients.

Business News

Google's CEO Says AI Is Now Responsible for 25% of 'All New Code' Created at the Company

Google CEO Sundar Pichai said engineers are moving faster because of AI.

Business News

'Additional Human Touch': Starbucks Has a Turnaround Plan That Includes Buying 200,000 Sharpies. Here's Why.

Faced with declining sales, Starbucks has a comeback plan that involves several changes to stores and menus. Here's a look at the changes coming to your store.