PRESS RELEASE - MobiusPay wants to remind all brick and mortar merchants that EMV-compliance (Europay, MasterCard, and Visa) is the new standard in the United States. As of October 1, 2015 the major credit card companies, MasterCard, Visa, Discover and American Express began shifting liability for credit card fraud from the card issuer to merchants that are not EMV-compliant. Now that the deadline has passed, what happens next?
The liability shift is just that – the accountability for fraudulent or counterfeit transactions has passed to the merchant. If the merchant’s credit card terminal is not compliant with the EMV standards, meaning it cannot accept a credit or debit card containing a chip, the liability for fraudulent transactions has been transferred to the merchant who continues operating non-compliant hardware after the deadline.
For example, if a merchant is operating a compliant terminal and experiences a fraudulent EMV transaction using the chip and signature method, the issuing bank will be liable, however, if the merchant’s terminal is only capable of reading the magnetic stripe and the card that is used in the fraudulent activity has a chip, the merchant will be liable for that transaction even though they are a victim of fraud.
MobiusPay CEO, Mia Hyun explained, “What it comes down to is this, if the card contains a chip, but the credit card terminal doesn’t have a chip reader, or is not programmed to utilize the chip reader, the merchant can be liable for counterfeit as well as lost or stolen card activities.”
Hyun continued, “If a merchant is still operating non-compliant equipment, it is highly recommended to obtain compliant equipment in order to be covered by the liability shift. If your business is in need of an EMV-compliant terminal, you should contact your merchant services provider immediately.”
The liability shift only affects merchants who conduct business face-to-face; it does not affect electronic commerce or mail order/telephone order businesses. For more information on the EMV liability shift and how it might affect your business, contact firstname.lastname@example.org
MobiusPay, Inc. is headquartered in Los Angeles, California and offers comprehensive and cutting-edge electronic payment processing solutions. We are your premier business partner in facilitating the acceptance of electronic payments for your products and services both online and on the go; featuring a fully secure end-to-end global payment solution supporting all major credit cards, 36 global currencies, support for a variety of integrated shopping carts, ACH, and a wide range of custom-tailored solutions for your business. MobiusPay is your reliable and strong business partner specializing in high-risk merchant accounts in the US, EU, and Asia.Return to Blog