We know you’ve heard the hype about the upcoming EMV liability shift. The main driver behind EMV migration is card fraud. Annual costs of card fraud in the U.S. alone are estimated at nearly $8 billion. As global and domestic losses continue to rise, ensuring compliance with a global chip-compatibility strategy is more important than ever.
What is the liability shift about?
The liability shift is about who assumes liability for any transactions, made using a chip-enabled card, that are found to be fraudulent. MasterCard defines the liability shift as “the party, either the issuer [financial institution] or merchant, who does not support EMV, assumes liability for counterfeit card transactions.” What this means is that banks, credit unions, and merchants must start implementing EMV-compliant cards and devices, or risk paying the price.
Important dates to know…
POS Liability Shift: After October 1, 2015, all card present fraud at the POS will be shifted to the “non-EMV link in the chain.”
ATM Liability Shift: After October 1, 2016 (MasterCard), and October 1, 2017 (Visa), non-EMV ATMs will be charged back for card fraud when a customer’s EMV card falls back to the magnetic stripe.
Gas Liability Shift: October 1, 2017 is the date after which non-EMV gas pumps will be charged back for fraud when a customer’s EMV card falls back to the magnetic stripe.