New technology in credit cards leads to headaches for some
NEW YORK (AP) - Millions of Americans are getting new credit and debit cards with more secure chip technology, and that's already leading to headaches for companies that rely on working cards to charge their customers every month.
Video and music streaming companies, dating websites, gyms and other subscription-based companies can take a hit when customers don't update their accounts after receiving a new card. It's always been a hassle, but with millions of cards carrying the new chip technology being mailed out all at once it's creating bigger problems.
Netflix Inc. this week said large numbers of cards that weren't updated were partly to blame for slower subscriber growth in their most recent quarter.
The chip technology is intended to make data more difficult to steal, compared with traditional magnetic strips.