Thousands of ATM owners, from megabanks to mom-and-pop operators, could be on the hook for millions in fraud losses if they miss a deadline this month to upgrade their machines, the Wall Street Journal reported today. The shift will come if the owners fail to meet an April 19 deadline set by MasterCard Inc. for ATMs to authenticate debit-card transactions using computer chips rather than magnetic stripes. "Virtually no one is going to be ready," says David Tente, executive director in the U.S. for the ATM Industry Association. The trade group has asked MasterCard Inc. to delay the target date, but the Purchase, N.Y.-based company so far hasn't changed it. The April 19 deadline applies only to MasterCard-branded debit cards that are issued by overseas banks and used at U.S. ATMs. That is roughly 1 percent of all U.S. ATM transactions, or roughly 60 million swipes a year. If the ATMs are not upgraded, the owners will be financially responsible for fraudulent transactions linked to those cards. While withdrawals are typically limited to less than $1,000, the losses could mount quickly; one sizable fraud could wipe out the annual profits for a machine, according to industry experts.
