Six Things to Know About Chip Cards as You Shop for the Holidays

Fifth Third Bank Helps You Stick to Your Budget

CINCINNATI–(BUSINESS WIRE)–This is the first holiday shopping season when many American shoppers
will use their upgraded chip debit and credit cards. The chip cards are
designed to help cut down on fraud, yet they aren’t foolproof. As some
consumers are still learning how to use their new chip cards, or are
checking to see if a store has a chip reading terminal, you might expect
some delays at check-out lines.

“It’s an important holiday season for us and the industry,” said Jimm
Bell, senior vice president and director of card services for Fifth
Third Bank. “We’ll have more chip cards than ever before, and it will be
a good time to check how we’re all doing.”

Here are six things to know before you shop:

Will every retailer have a chip reader?

The transition to chip cards and readers isn’t an overnight switch.
Banks in the U.S. have been replacing debit and credit cards with
chip-enabled cards this year, and are continuing to do so into the new
year. Retailers are adding chip card terminals to their check -out
lines, but the process won’t be complete by the end of the year. So if
you have a chip card, but the retailer doesn’t have a terminal that
accepts chip cards, you still can swipe your card with the magnetic
stripe. And if you don’t have a chip card yet but the store has a chip
enabled terminal, don’t worry, you can still swipe your card with a
magnetic stripe at new chip card readers.

Why does the process take longer?

With the chip, most consumers won’t swipe their cards, but insert them
into card readers, with the chip and face of the card facing forward. A
notice on the screen will alert the customer to wait for the transaction
to finish before they can remove their card. It can take a little
longer, in part because of the process, but also because many consumers
are using chip cards for the first time and rely on store clerks to
explain the process.

Do I need to look out for anything?

Consumers need to make sure they don’t forget their cards at the
check-out counter. Unlike the magnetic strip cards, in which consumers
never have to let go, chip cards are inserted into the reader for a
certain period of time. “We want to remind customers to remove their
card from the terminal at the end of the transaction,” Bell said.

Will it be safer?

Chip cards offer advanced security for in-store purchases by making
every transaction unique, which makes it more difficult to counterfeit
or copy. If the card data and one-time code are stolen, that information
cannot be used to commit fraud or create counterfeit cards.

Consumers with chip cards are responsible for the same amount as they
were with magnetic stripe cards. Credit card holders are responsible for
a maximum of $50 in fraudulent charges. That stays the same with the new
chip cards. With debit cards, the amount depends on how quickly you
alert your bank.

However, merchants who haven’t upgraded card readers to take the new
chip cards, could be responsible for fraud loss if they accept
transactions on chip cards that could have been processed as chips.

What else can I do to prevent fraud?

As consumers use their credit or debit cards more frequently during the
holiday season, they need to keep a close eye on all purchases to ensure
they are valid. One way to check is to set up text alerts from your bank
to show transactions, withdraws or balances, Bell says. Fifth Third’s
banking app makes it easy to set up alerts.

“Text alerts are a quick way to help you keep track of your holiday
spending,” Bell said. “It’s a good reminder to help you stick to a
budget.”

About Fifth Third:

Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. The Company has $142 billion in
assets and operates 1,295 full-service Banking Centers, including 99
Bank Mart® locations, most open seven days a week, inside select grocery
stores and 2,650 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois,
Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and
North Carolina. Fifth Third operates four main businesses: Commercial
Banking, Branch Banking, Consumer Lending, and Investment Advisors.
Fifth Third is among the largest money managers in the Midwest and, as
of September 30, 2015, had $297 billion in assets under care, of which
it managed $25 billion for individuals, corporations and not-for-profit
organizations. Investor information and press releases can be viewed at www.53.com.
Fifth Third’s common stock is traded on the NASDAQ® Global Select Market
under the symbol “FITB.” Fifth Third Bank was established in 1858.

Copyright © 2015. Fifth Third Bank, Member FDIC, Equal Housing Lender,
All Rights Reserved.

Contacts

Fifth Third Bank
Laura Trujillo, 513-534-4361
Laura.trujillo@53.com