Do I need to get a chip card reader? If it's optional, what is the advantage?

[binciong]

I only use my account seasonally so it's been awhile.  Til now I have only used the old, small swipe reader.  I just swiped my own chip credit card and it appeared to process just fine. 

1. Do I need to "upgrade" to a chip card reader? 
2. Is the chip card more for customer protection than merchant? 
3. Should I be able to accept payments from all card types?
4. Any reasons I'd want to get a chip card reader anyway?

[VanKalkerFarms · Accepted solution]

1. You don't need to but should. 

2. The chip reader is a newer technology, but if you don't "dip" a chip card and it turns out to be fraudulent you will be liable for the purchase because you decided not to use the correct, secure, and current method for accepting credit cards. 

3. you can still accept all credit cards that have a magnetic strip. But eventually the chip transition will continue on its replacement path and eliminate the magnetic strip. 

4. You should get the chip reader. I recommend the Bluetooth chip reader with nfc capabilities. It's $49. Battery lasts for days. I've had nothing but problems with the plug in chip readers. 

To sumarize. You are now "the weakest link" in the credit card processing path if you don't have a chip reader so you bear the burden on fraudulent charges. 

So upgrade to a chip reader. 

[binciong]

Thank you very much for the thorough response.

If I am only accepting payment from people that I know and trust, I should be okay to continue using the stripe reader?

I use this for some of our fundraiser events very seldomly and hope that there are better cheap readers available or cheaper before I need to use it again (could be a year or two).