Effective October 1, 2015 there is going to be a liability shift in regards to the party responsible for reimbursing a customer for a fraudulent purchase made using their credit/debit card. At the moment, the issuer of the credit/debit card covers the cost of the fraudulent charge. However, if proper steps are not taken, this liability may shift to the business who accepted the card as payment.

Recently, you may have noticed a change to your credit/debit cards to include a small microchip on the front of the card. The purpose of the microchip is to increase the security of the data transferred from the card to the credit card reader. However, this increased security is only available if the card is read using machines equipped with the same technology. The technology is called EMV, which is the global standard for smart card payments and acceptance devices, named after the developers: Europay, MasterCard and Visa. In order to encourage businesses to purchase the necessary EMV readers to utilize the new technology, a liability shift is being put into place on October 1, 2015.

In summary, if you are a retailer and you do not update to an EMV compliant card reader, then you will be held liable for the fraudulent charge if the customer uses a card that is EMV compliant.

Please let us know if you have any questions, or if we can be of assistance in any way.