Duluth Company Helping With Credit Card ‘Chip’ Transition

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Businesses throughout the Northland are right now in transition to accept chip-embedded credit and debit cards.

Duluth’s VPS, Velocity Payment Systems, is one of the companies building the new credit card readers.

David Allen, CEO at VPS, says the new chips will cut down on fraud from stolen, lost or counterfeit cards.

“You can see the chip right in the card. So the retail looks at the card, they’ll be able to recognize it as a chip card and insert it into the front of the terminal rather than swiping it through the magnetic strip reader as they have in the past,” Allen said.

Allen said it’s an expensive transition for credit card companies and merchants, but it’s the new federal law that everyone will eventually have to follow sooner than later.