What Is the EMV Fraud Liability Shift?

By PayAnywhere on
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EMV chipThe shift in EMV fraud liability has been a hot topic recently - there seems to be a lot of conflicting reports on what is going to happen when we turn the calendar to October 2015. That’s why we’re here to explain it.

If you boil the fraud liability shift down to one sentence it’d be: the least secure party in a card transaction— merchants 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’ve put together these quick bullets to better explain a few of the more complex scenarios of the shift:

  • EMV fraud liability depends on the type of card presented at the point of sale 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 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 point of sale (POS) terminals or devices.

PayAnywhere has taken steps to help merchants stay on the cutting edge of both technology and security with the newest version of the PayAnywhere Mobile credit card reader that is now available exclusively in Apple Stores. Available for iOS devices, this new PayAnywhere Mobile reader is EMV-capable and accepts Apple Pay, other contactless NFC payments and traditional magnetic stripe credit cards. PayAnywhere Storefront is also equipped with EMV capabilities to help you reduce your liability with certain card transactions.

Did you know? Losses tied to counterfeit cards are supposed to reach $3.6 billion in 2015 — a new record.

If you have any questions PayAnywhere Storefront or PayAnywhere Mobile, contact us at 877-387-5640, or visit our website.