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EMV Liability Shift

Overview#

Today, across payment networks, liability for card-present fraudulent transactions is generally the responsibility of Card Issuers.

Originally, Beginning in October 2015, certain U.S. payment networks independently plan to implement fraud liability shifts that will impact transactions from a counterfeit card using Magnetic Stripe Card on a Chip Card and/or lost or stolen card transactions.

As of the date, liability for those transactions generally will shift to the acquirer/merchant in certain cases if they do not use EMV chip Card devices and applications to process payment transactions.

The impact of these EMV Liability Shift to the acquirer/merchant depends on whether:

  • EMV chip cards (domestic and international – including credit and debit cards) are used
  • EMV chip-enabled point-of-sale (POS) card payment acceptance devices/applications are deployed (excluding automated teller machines (ATMs) and automated fuel dispensers (AFDs)),
including in-person POS retail devices, unattended terminals, kiosks and vending machines, and mobile payment acceptance devices (MPOS).

ATMs and AFDs: #

EMV Liability Shift impacting ATMs and automated fuel dispensers have different timeframes and are not known.

More Information#

There might be more information for this subject on one of the following: