EMV Liability Shift
Why it pays to adopt new technology
EMV chip technology is rolling out to consumers and merchants in the United States. EMV chip cards protect in-store payments by generating a unique, one-time code needed for the transaction to be approved. This feature makes it virtually impossible to counterfeit cards, helping to eliminate in-store fraud.
On October 1, 2015,
in-store* counterfeit fraud liability will shift to the party – either the issuing financial institution OR the merchant – that has not adopted chip technology. Understanding how this liability shift affects YOUR business can help protect you from liability exposure. So, what does that mean to you?
The really good news is that when both parties adopt the new chip technology, overall in-store counterfeit fraud is virtually eliminated due to the security benefits of the chip.
So, what can you and your business do to limit your liability, if you do not want to invest in the new technology after October 1, 2015?
As usual, your best protection is to verify the card holder by verifying the ID. If you have a new client, simply ask them for their ID to verify they are who they say they are.
DON’T BE TRICKED INTO BUYING NEW EQUIPMENT OR SIGNING NEW LONG-TERM CONTRACTS.