EMV is a fraud reduction standard for credit & debit payment cards. Just because the United States is well past the October 1, 2015 liability shift doesn’t mean the Europay, MasterCard and Visa (EMV®) transition is in the bag. EMV is a global fraud reduction standard for credit and debit payment cards based on chip…
By now you have likely heard about the October 1, 2015 EMV Liability Shift. Simply put, the Liability Shift means that the liability for fraudulent cards falls on the party who is the least EMV compliant. For example, if you process a chip credit card using a swipe-only terminal, you may be liable for the fraud. If the card holder does not have a chip card, the merchant would not be responsible as the liability would fall on the card issuer. You can learn about different scenarios here: Liability Shift.
EMV chip card technology is rolling out in the U.S. with the October fraud liability shift rapidly approaching. There are many misconceptions about EMV as information surrounding the technology swirls. As you work towards supporting EMV, it is helpful to understand what EMV is and what it is not.
Payment card fraud is a big issue in the U.S. How big? The U.S. accounted for 51% of global payment card fraud costs in 2013, according to BI Intelligence. Further, the cost of U.S. payment card fraud grew by 29% to $7.1 billion. The hope is that EMV adoption will help turn these numbers around.
What Are the Benefits of Merchants Adopting EMV?
The primary benefit of Europay, MasterCard, and Visa (EMV) technology is the reduction in card fraud resulting from counterfeit, lost, and stolen cards.
Are you ramping up your knowledge of EMV in advance of the Liability Shift this fall? If so, you are not alone. A recent report shows one-third of smaller merchants are unaware of chip cards.
In this article, we’ll help you on your journey by covering the basics of EMV, what the Liability Shift means to your organization, and more.