Small businesses sue credit card companies over chip readers


SAN FRANCISCO (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.

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

The lawsuit was brought forth by grocery stores in California, Florida, and New York. They sued American Express, Discover, MasterCard, and Visa earlier this year.

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


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s