Lose your credit or debit card recently? A replacement may take longer than you remember
Lose your credit or debit card recently? A replacement may take a bit longer these days.
The pandemic-era chip shortage is hitting some consumers right in the wallet, especially if you're dealing with smaller credit unions and banks.
"Credit cards are further down the list, and furthermore smaller credit card issuers are even further down the list. So that's where we're hearing about the longest delays, credit unions and community banks," said Ted Rossman, a senior industry analyst with Bankrate.
The semiconductor shortage that started in 2020 was exacerbated by increased demand and the Russian invasion of Ukraine, which impacted supplies of neon, a key element in making chips.
Last summer, the Smart Payment Association, a global industry group for cards and mobile payments, issued a warning about continued impacts on items containing ships throughout 2023.
Recently, some credit unions and smaller banks have told customers that it will take a little more time to replace a card.
In the meantime, Rossman said it may be smart to take advantage of contactless options that became more popular during the pandemic.
"The pandemic did really juice adoption of things like Apple Pay and Google Pay," Rossman said. "They've been around for almost a decade but a lot of people became more comfortable transacting that way when they were afraid to touch physical payment terminals."
A bonus to using your phone's mobile wallet? You can keep your card at home for safekeeping during the current chip crunch.