Are you ready for / worried about the new fraud regulations going into effect on Oct 1st, 2015 when it comes to fraudulent credit card transactions? Just seems like another way for banks to screw small businesses...
from creditcards.com said:5. If fraud occurs after EMV cards are issued, who will be liable for the costs?
Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction fall back on the payment processor or issuing bank, depending on the card's terms and conditions.
After an Oct. 1, 2015, deadline created by major U.S. credit card issuers MasterCard, Visa, Discover and American Express, the liability for card-present fraud will shift to whichever party is the least EMV-compliant in a fraudulent transaction.
Consider the example of a financial institution that issues a chip card used at a merchant that has not changed its system to accept chip technology. This allows a counterfeit card to be successfully used.
"The cost of the fraud will fall back on the merchant," Ferenczi says.
The major credit card issuers each have published detailed schedules about the upcoming shift in liability. The change is intended to help bring the entire payment industry on board with EMV by encouraging compliance to avoid liability costs.
Any parties not EMV-ready by October 2015 could face much higher costs in the event of a large data breach.
Automated fuel dispensers will have until 2017 to make the shift to EMV. Until then, they will follow existing fraud liability rulings.
Read more: http://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php#ixzz3hORp9bai