There have been news stories broadcast, investigative reports published and countless blogs written on how the shift in EMV fraud liability will affect businesses of all sizes — including yours. But what will truly be your liability when the clock hits Midnight on October 1, 2015?
We’re going to attempt to simplify it as much as we can by trying to encapsulate the liability shift in one sentence: the least secure party in a card transaction (merchant who do not support EMV) can be liable for card fraud and, in some cases, for lost and stolen card transactions.
With the help of the people at Discover Card, we offer these quick bullets to better explain some of the more complex scenarios that can affect liability at point of sale (POS) terminals:
- EMV fraud liability depends on the type of card presented at POS and the capability of the merchant terminal.
- If fraud occurs, the party (the issuer or merchant) that has the less secure EMV technology will typically hold the liability.
- By supporting EMV-enabled terminals, merchants/acquirers can avoid EMV liability for counterfeit card transactions when processing an EMV transaction.
- By supporting EMV-enabled terminals that accept Chip and PIN cards, merchants can avoid liability for lost and stolen card transactions.
Note: Transactions generated from automated fuel dispensers have until October 1st, 2017 before the liability shift takes effect.
Click here for an easy to follow chart that explains the type of liability and where it falls when performing certain transactions on different merchant POS terminals or devices.
Did you know? Losses tied to counterfeit cards are supposed to reach $3.6 billion in 2015 — a new record.