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A Simple Guide to EMV Chip Cards and the Liability Shift

A Simple Guide to EMV Chip Cards and the Liability Shift The nationwide migration to chip cards (EMV) is well underway. And starting soon, you could be on the hook for some types of fraudulent transactions if you're not able to accept these new cards. That's because starting October 1, 2015 something called the liability shift goes into effect. But what exactly is the liability shift? You probably have a lot of questions. Here's a simple guide to everything you need to know. The U.S. is the last major market to make the switch to chip cards, and it's costing us: $11B In 2013, the US reported $11 Billion in credit card fraud. US is home to 24% of world's US is home to 47% of world's credit card transactions. credit card fraud. CARD SALES WORLDWIDE FRAUD WORLDWIDE Making moves away from magnetic stripe cards toward EMV chip cards Magnetic stripe cards were introduced in the 1970s and utilize the same technology as a cassette tape. A EMV Chip Cards Dipped Difficult Data is dynamic to counterfeit and encrypted Magnetic Stripe Cards Swiped Easy Data is static and can to counterfeit be easily cloned What This Means for Your Business 10/1/2015 Liability shifts to merchant for certain counterfeit card transactions What is Changing? Long story short-for certain counterfeit transactions, the liability shifts to the party with the less secure technology. Follow this simple flow chart to determine whether you- the merchant-could be held liable. Was there counterfeit card fraud? Yes Did you process Was the card Yes Was the card an Yes the transaction with No You could now present? EMV chip card? an EMV chip card be held liable. reader? No No Yes Nothing is changing. Nothing is Nothing is changing. changing. For more information visit

A Simple Guide to EMV Chip Cards and the Liability Shift

shared by Michaelson on Nov 13
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On October 1st 2015, the liability shift went into effect. What is it? Well it's all about the nation wide migration to EMV chips in our credit cards and this guide will explain it all.


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