Effective last October, merchants who process a chip-enabled payment card by swiping the magnetic stripe instead of dipping the card in the chip reader are subject to full liability for fraudulent transactions. So why are banks continuing to issue cards that contain both chips and magnetic stripes?
This article from ATM Marketplace offers some thought-provoking insights about the way card networks and issuers are implementing EMV chip technology in the US.
Undoubtedly, EMV is an effective fraud prevention tool. But the way it is being implemented creates justifiable scrutiny. I will be publishing an article on that topic in the next couple of days.
TGIF!
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