IF YOU ARE IN A RETAIL BUSINESS YOU SHOULD PROBABLY KNOW ABOUT THE SWTICH FROM MAGNETIC-STRIPE CREDIT CARDS TO CHIP-EMBEDDED CREDIT CARDS
According to this item in the Arizona Republic, the change-over from magnetic-stripe to chip-embedded credit cards is going to include upgrading the credit-card readers that retailers use. The suggestion in the article is that if you don’t upgrade, you will be liable for fraudulent magnetic-stripe card use. I imagine that will involve a change to the user agreement between the retailer and the banks or card issuers.
We accept Visa and Master Card at my firm, but we don’t use a card reader. Our volume of credit card transactions is low enough that we don’t need to use one.
You might think that Puerto Rico’s default on its debt doesn’t have anything to do with you personally, or with your finances. It probably doesn’t, but if you have invested retirement (or non-retirement, for that matter) savings in a tax-exempt municipal bond mutual fund, you might want to see if that fund holds any bonds issued by agencies of Puerto Rico. Those bonds have taxation characteristics similar to those of bonds issued by state and local governments in the United States, which has in the past made them attractive as holdings in tax-exempt municipal bond funds.
I wouldn’t venture to predict whether those bonds will end up being worthless, but I think it’s a pretty safe bet that they will lose a significant amount of their value.
I found this take on the background on why Puerto Rico is bankrupt to be very interesting. It had occurred to me that Puerto Rico could have an economy based on agricultural exports, but they apparently gave up on that a long time ago.
Having just finished an accounting class at Pima Community College, I can particularly relate to this perspective by Coyote on the accounting for the costs of the Valley Metro light rail system, in view of the upcoming ballot question on extending the transit tax.
Read the July installment of my Estate Planning Law Report. In it, I give you the basic questions you should ask to start on the important task of planning for the succession of your business.
As always, it’s in the publications section of my firm’s web site, where you can also peruse the archive of past installments of the Report.
The contents of this blog, this web site, and any writings by me that are linked here, are all my personal commentary. None of it is intended to be legal advice for your situation.