Ben Jones is the owner of a local record store, Better Days.

“Most people are using credit card nowadays,” Jones said.

Like many businesses, he uses a chip card reader at the counter, one he's had for about a year.

Now that banks are issuing more and more chip cards, Jones says he's surprised not all businesses have chip readers, because businesses can be liable for fraud.

“If businesses do not conform and accept chip cards, 100 percent of all fraud liability now falls on those businesses,” said Catherine Beam, part owner of Retriever Consulting part owner.

Fraud does happen, especially in Kentucky, partly because of how resistant local businesses are to the change.

“Kentucky is the fourth-largest state for credit card fraud,” Beam said.

That's partly because of how easy it is to steal information from the magnetic strip on a card.

“That little strip on the back of your credit card contains your name, your address, your full credit card number and your expiration date,” Beam said.

On the other hand, the information in your chip is jumbled, and thieves can't read it.

“They can still intercept it, they can still steal it, but they can't do anything with it because it's all encrypted and jumbled and only the person who has that encryption key can unlock and process that information,” Beam said.

Some business owners might still resist because of the expense to update the terminal.

“We spent about $700, maybe $800,” Jones said.

There are local programs that provide card readers at a discounted price, or even for free.

Retriever Consulting is offering free equipment from now until the end of the year.

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