On October 1, the liability shifts to retailers. Until now, across payment networks, liability for card-present fraudulent transactions has generally been the responsibility of card issuers. That changes next week, as U.S. payment networks implement fraud liability shifts that will impact transactions from a counterfeit card created from the magnetic stripe on a chip card and/or lost or stolen card transactions.
The main driver behind the EMV migration is card-related financial fraud. Annual costs of card fraud in the U.S. alone are estimated at $8.6 billion per year. Of the 1.2 billion credit and debit cards in circulation in the U.S., it is estimated that 70 percent will have chips by the end of 2015.
If you have not already upgraded your credit card terminal to accept chip cards, you need to seriously consider the impact that not upgrading will have on your business after October 1. Using the magnetic strip on a chip card could be opening the door to potential liability. While there is no requirement that you upgrade your terminal, failure to do so could expose you to chargebacks you don’t currently see in your business.
If you have questions about the transition – and what you should be doing to prepare for this shift in liability, please contact the Connecticut Retail Merchants Association at 860-527-1044. We are here to provide assistance and respond to your questions.
Beyond this immediate issue, CRMA recognizes your need for cost-effective and efficient credit card services. CRMA has joined forces with the Michigan Retailers Association to offer members discounted credit card processing rates and first-rate services. Their Retailer’s Processing Network is the largest non-profit credit card processing service in America. Working together, we have custom designed credit card programs with top-notch benefits for retailers, including data breach protection, unparalleled support and more!
If you’d like to learn about this special program for CRMA members, contact us at 860-527-1044 or firstname.lastname@example.orgTrackbacks (0) | Permalink