EMV Liability Shift FAQ

Q:  What is EMV?

A:  EMV (EuroPay, MasterCard, Visa) is a new standard of operation for smart card payments and acceptance devices. EMV chip cards contain embedded microprocessors that provide stronger transaction security and other features not available with magnetic stripe cards.

Q:  What are the benefits of EMV?

A:  The biggest benefit of EMV is the reduction in card fraud resulting from counterfeit, lost and stolen cards. EMV technology protects vendors from liability for fraudulent transactions. EMV technology also provides access to the global payments infrastructure; consumers with EMV cards can use their card on any EMV-compatible payment terminal in the world.

Q:  What is the Liability Shift?

A:  To incentivize upgrading to the new EMV standard, businesses that are not EMV compliant on, or prior to, October 1st, 2015, may become liable for in-person credit card fraud from lost or stolen cards and card-not-present transactions. Banks and payment processing companies were responsible for the costs of this type of fraud before October 1st, 2015.

The Liability Shift in this country is an ongoing process that is not projected to complete until October of 2017.

Q:  How can I obtain an EMV-compatible card reader?

A:  As a participant in the MarketLink program, you will be provided with an EMV-compatible card reader for your market(s), at no cost to you, without any further action required on your part.  The card reader(s) will be sent to the registered mailing address on file for your market(s) within the next few weeks.  Your patience with us during this exciting time is most appreciated.

Q:  It's after October 1st, 2015 but I still don't have an EMV-compatible card reader.  What should I do?

A:  Your concern is completely understandable.  Our company has submitted all hardware and software for certification.  At this time, we ask that you conduct business as usual while we await final approval to provide you with an EMV-compatible card reader.

Our partner company, WorldPay, is also entering the final phases of preparation for the new standard.  You can refer to WorldPay's EMV information portal for more information about this process.

Q:  I'm concerned that my business is non-compliant.  Am I at risk of liability?

A:  We know that as a small business owner, you want to do everything you can to make sure that your business is protected.  You can be assured that our company is doing all that we can to provide you with the tools you need to comply with the new standard.

The good news is that the Liability Shift that went into effect recently is primarily concerning card-not-present, or CNP transactions.  CNP transactions are a staple of e-commerce, and are mainly used when paying bills or shopping online. Your business will rarely, if ever, process CNP transactions on your market days.

Further, the Liability Shift regarding in-person credit card fraud will officially go into effect only after 70% of installed payment processing equipment in this country is EMV-compliant.  The percentage of installed EMV-compliant payment processing equipment in the US is still well below that mark.

Q:  Where can I learn more about EMV?

A:  The EMV Connection website provides a wealth of information about EMV. EMVCo also provides many resources on its website, as well.

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