Credit card chip shortage

[Gollum]

I use my smartphone (Android, Google Wallet) to pay with a credit card via NFC (Near Field Communication: Tap to Pay) because of the convenience and security. I usually don't use the actual credit card, but when I have to do so, I like it when my credit card has a chip because I think that is more secure than the magnetic stripe on the credit card.

Apparently there is currently a shortage of chips for the actual/physical credit cards.

"Wait times of six weeks or more have become common — particularly for credit union members — compared with the five- to 10-day turnarounds seen in the past."

"In the chip hierarchy, credit cards are at the bottom..."

"The credit card industry has its own pecking order. Big institutions such as American Express, Chase and Discover told The Post they aren’t experiencing delays in their supply chain. Instead, experts say, it’s credit unions and regional banks that are hurting..."

https://www.washingtonpost.com/business/2023/02/14/credit-card-delays/ (February 14, 2023)

[OmarGB9]

Nothing new. The shortage has been going on since the pandemic.

[SweetCreditObsession]

@Gollum, though this isn't "new" information for us on the boards, I appreciated the DP that CUs seem to be impacted more than the national banks.

Thanks for sharing!

[ChargedUp]

Once @M_Smart007 slows down on app'ing, the chip supply should go back to normal

[805orbust]

@ChargedUp that is HILARIOUS!!!!   I've done around (7) card apps during the pandemic and the only time I heard of a shortage was just recently with the Redstone CU Visa.  They actually sent me an email about that mess.  Took over a month to get in the mail.

[ChargedUp]

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@805orbust wrote:

@ChargedUp that is HILARIOUS!!!!   I've done around (7) card apps during the pandemic and the only time I heard of a shortage was just recently with the Redstone CU Visa.  They actually sent me an email about that mess.  Took over a month to get in the mail.

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So far, I haven't had any cards take an extended amount of time to show up. I suppose Citizens taking nearly 2 weeks would be the longest wait time. BMO Harris seemed like it was less than a week. A few months ago Citi and Gemini came in roughly the same amount of time IIRC.

[805orbust]

@ChargedUp I think it's a crapshoot. Although I remember someone here remarking that there aren't too many firms in the country that manufacture the actual cards/chips. 

[Adkins]

My main credit union, RBFCU, is replacing their credit cards with upgraded contactless ones (finally!! 🙄). Everyone's numbers on their cards will be changing and they are upgrading the payment system for them. We got notification of the change late last year, then another notification of when the cards would be shipping, then a confirmation of when the cards shipped. The cards arrived when they said they would. RBFCU isn't huge when say compared to NFCU, so I have to wonder if they built the chip lag time into consideration when rolling out the new cards and payment system for them. 

[Gollum]

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@Adkins wrote:

My main credit union, RBFCU, is replacing their credit cards with upgraded contactless ones (finally!! 🙄). Everyone's numbers on their cards will be changing and they are upgrading the payment system for them. We got notification of the change late last year, then another notification of when the cards would be shipping, then a confirmation of when the cards shipped. The cards arrived when they said they would. RBFCU isn't huge when say compared to NFCU, so I have to wonder if they built the chip lag time into consideration when rolling out the new cards and payment system for them. 

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If RBFCU is Randolph-Brooks Federal Credit Union, it is the largest credit union in Texas, and the 11th largest credit union in the United States, based on total assets (https://en.wikipedia.org/wiki/Randolph-Brooks_Federal_Credit_Union).

[Royalbacon]

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@Adkins wrote:

RBFCU isn't huge when say compared to NFCU

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NFCU is an anomally when it comes to credit unions, not the norm.

Largest Banks and Credit Unions By Asset Size (depositaccounts.com)