What is EMV?
Credit card fraud is a prevalent world-wide problem. Europay, MasterCard and Visa (EMV) teamed up to create a new technology standard for merchant card processing in an attempt to keep thieves from accessing consumer’s personal information. The new cards are imbedded with a small high-tech chip which creates a unique code for each transaction, making it difficult for criminals to duplicate customer’s personal information. The card has to be inserted into an EMV card equipped terminal which uploads the information to complete the transaction. The new EMV Liability shift is an attempt to create incentives for merchants to upgrade to the higher security standards.
What is EMV Liability?
Currently credit card issuers take the financial liability for fraudulent activity. Beginning in October, however, any businesses that have not installed the EMV card equipped terminal will instead be held accountable for any fraudulent transactions that are processed. Consumers will still be able to use the magnetic card swipe at the new terminals but as long merchants have installed the EMV card terminals, any fraudulent activity that occurs will continue to be covered by the credit card issuer.
When is the EMV Liability Shift Happening?
Credit card issuers have set a deadline of October 1st, 2015, for merchants to implement the new technology.