Liability Shift

MasterCard reports big decrease in fraud due to EMV adoption, but are merchants actually paying more fraud costs than before?

 MasterCard reported an impressive 27% year-over-year reduction in counterfeit card fraud at EMV chip-enabled merchants. That doesn't mean merchants are seeing the benefits of those reductions.   In May, I blogged about the sharp rise in chargebacks that merchants are experiencing due to the liability shift that occurred last October, whereby merchants can be charged back without [...]

By |2017-11-18T15:32:39-05:00June 1st, 2016|EMV, Liability Shift, MasterCard|Comments Off on MasterCard reports big decrease in fraud due to EMV adoption, but are merchants actually paying more fraud costs than before?

Why do banks issue payment cards with magnetic stripes then penalize merchants for accepting them?

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 [...]

By |2017-11-18T15:32:41-05:00May 6th, 2016|EMV, Liability Shift|Comments Off on Why do banks issue payment cards with magnetic stripes then penalize merchants for accepting them?

Is the EMV liability shift being manipulated to charge back legitimate transactions?

Some in the payments industry saw this one coming, but nobody expected it to be this big. Card-present merchants are experiencing up to a 50% increase in chargebacks since the EMV liability shift took place last October.  Under the new policy, merchants who don't process a chip on an enabled card during a card-present transaction accept unilateral liability [...]

By |2016-03-10T13:51:11-05:00March 10th, 2016|chargebacks, EMV, Liability Shift|Comments Off on Is the EMV liability shift being manipulated to charge back legitimate transactions?

Are chip cards already obsolete?

Bankrate.com published an interesting article about the relatively slow pace of chip-based card adoption by consumers and merchants, despite the fraud liability shift that occured beginning October 1, 2015. The same point-of-sale upgrades required for EMV may ultimately spell doom for the familiar plastic payment card.  It will be a slow death (after all, there are plenty [...]

By |2016-03-09T22:38:57-05:00March 7th, 2016|EMV, Liability Shift|Comments Off on Are chip cards already obsolete?
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