For those who physically accept credit cards...

[MrDeranged]

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...

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

 

[Rick Bergeron]

Yes, the reader device cost is most likely inflated. Some rates could actually go down IF you have an interchange plus merchant account instead of a 3 tiered rate merchant account.

Off-topic: many merchants do not know that AMEX rates went down significantly on May 1, 2015. Some are actually lower than MC/Visa (instead of the traditional 3.5%) but banks are not required to charge the new rates unless you ask. It is to their advantage by not volunteering the lower rate.

 

[Ginger Garnitz]

Square is already shipping their EMV readers and has the NFC/emv readers coming soon, Intuit Go-pay and paypal Here will be making theirs available in about a month. You'll have to pay for the new readers, but the fee will be credited back (unless you don't use the swiper for several months after receiving it)

 

[Mimi]

I have already signed up for the Square reader which should be shipped early in the fall. As Ginger stated, you will get the $49 that you are charged back in free processing fees up to $49.

 

[ShadowBox_Studios]

I'm hoping things work out for the best on this chipped credit cards. I hate having to swipe the card on the my Square reader (always seem to be doing it wrong), so having the ability to just dip the card in would be awesome.. and hopefully I don't screw that up

 

[Frann]

I use PayPal and they said they are working on a new Scanner to read the chip info. I hope I get it before Christmas or I'm going to be pretty upset. I'm wondering if having a different method as a back up would be a good idea?

 

[Mimi]

I have found that for my current Square reader I need to gently squeeze the top and bottom of the reader together as I swipe the card....it help it read the magnetic strip better it seems.

 

[Frann]

I have found that for my current Square reader I need to gently squeeze the top and bottom of the reader together as I swipe the card....it help it read the magnetic strip better it seems.

Mimi, it sounds like you need a new scanner.

 

[ShadowBox_Studios]

Mimi, I'm also swiping it with the card flipping wrong. Also realized that if you plug in the reader before you start the register on the phone, it won't recognize you have the reader plugged in.

 

[Mimi]

Frann I probably do but I figured I was getting the new one this fall and it always works...it just takes 2 or 3 swipes sometimes! ShadowBox_Studios It's 2 years old and they don't last forever. This is the only challenge it gives me and I eventually win

 

[ShadowBox_Studios]

Mimi - Good to know! We've only had ours for about a year now, and only issues I've had are the ones I mentioned. But that's just user error, lol. I hope the new reader for chipped cards will be easier