04-30-2016, 02:37 AM
The verdict is your bank is trying to cover their ass and not be liable, all cards will be smart chip soon.
If the retailer doesn't have smart chip reader, and there is fraud, then they are liable.
If the retailer has smart chip reader, and your card issuer's card does not have smart chip, then they are liable for any fraud.
Is it safer? Yes, each time your card interacts with a smart chip reader, it changes the key on the chip so that if your card info is stolen at the point of sale, that information is useless to try and make another transaction with.
What sucks about it is you have to stick your card in the slot and leave it there while it does its processing thing, so people forget their card is in there and leave them behind all the time.