On October 1, 2015, a liability shift is occurring as it relates to who is responsible for paying for chargebacks for counterfeit cards that are used at a retail store. Between the bank that issued the credit card, the retail store and the payment processor, whoever is least prepared to accept EMV-enabled payment cards will now be responsible to pay for the chargebacks.
In this blog post series, we'll help make you aware of common EMV myths and help you stay in control of when and how you want to implement EMV in your store.
1. Myth #1: Implementing EMV in your retail store is required and will be enforced by a government regulation or security council.
If you are a U.S. retail store operator, no government agency or industry association is requiring you to implement EMV. You will not be fined if you do not implement EMV by the often referred to “deadline date” of October 1, 2015. This is not a deadline. It is your decision whether or not you want to implement EMV – there is no requirement.
However, since the liability rules change on October 1, any retailer that hasn’t implemented EMV by this date may be liable for a fraud resulting from a magnetic - stripe payment.
2. Myth #2: If you don't implement EMV, you are liable for all fraudulent electronic transactions.
If you don’t implement EMV, the merchant does not automatically incur liability for all fraudulent electronic
transactions. The liability shift applies to whomever is not able to process EMV transactions. If the issuer does not provide EMV capable cards or the acquirer is unable to process EMV transactions the liability will apply to them instead of the merchant.
For the liability to shift to the merchant, an EMV card must be processed at the site by an acquirer that supports EMV transactions on a payment terminal that does not support EMV.
3. Myth #3: Once you implement EMV, you will no longer be able to accept credit cards with magnetic stripes.
Believe it or not, magnetic stripes on credit cards are going to be with us for quite some time. If you’re EMV-ready, when a customer pays with an older magnetic stripe credit card you’ll simply swipe it through your new payment terminal’s card reader.
So regardless of whether or not you have implemented EMV, you’ll be able to take all credit cards in your retail store.
As with most things that concern payment security, EMV sparks many questions and can be confusing at times. Ensuring you know the difference between fact and myth can help you navigate through this new milestone in payment processing.