n the last few years, we entered a brand-new era in card technology. This new wave of EMV technology propelled us decades ahead of magnetic stripe cards.
The global adoption of chip cards is perhaps the biggest shift in credit cards we have ever seen. Businesses around the world are seeing a dramatic reduction in financial losses due to fraud. Consumers are also benefiting as they can now shop securely and safely.
Yet even with the major strides that have been made with the adoption of chip technology, there are many businesses that are still in the dark when it comes to EMV. In particular, many businesses are unaware of the shifts in liability that EMV technology has created for businesses.
Before we dive into EMV liability shift, let’s quickly recap what EMV means.
Chargebacks give cardholders the right to dispute transactions.
WEMV stands for Europay, Mastercard, Visa. It represents a set of global standards based on chip card technology.
Chip card technology revolutionized the payment industry, and allows for the secure processing of electronic payments. It has single-handedly given businesses the upper hand in protecting their bottom line and their customers from fraud.
Magnetic stripe technology can be easily compromised by the sophisticated hackers of today. Thankfully, chip technology is incredibly difficult to hack, which allows for a safer and more secure environment for your business and your customers.
When chip cards were globally adopted in 2015, important changes were also made in how liability is assigned for credit card fraud.
EMV liability shift refers to the transfer of responsibility for financial losses due to the fraudulent use of credit cards.
Because fraudsters could easily copy magnetic stripe cards using simple technology, card brands were responsible for the losses incurred due to fraud. These financial losses amounted to a staggering $16 billion in 2014 alone!
To put an end to the devastating losses due to fraud, card brands around the world united to create EMV technology that would fight fraud effectively. In 2015, card brands rolled out chip cards. It has been proven to reduce in-store counterfeit fraud wherever chip card technology has been implemented.
Many businesses don’t fully understand that when chip cards were adopted, the responsibility for financial losses transferred from card brands to businesses.
This liability shift has reduced the costs of counterfeit fraud and has made payments safer for everyone. Yet for a number of reasons, not all businesses have upgraded to the EMV-ready terminals that have the ability to detect a counterfeit chip card.
Fraudsters target businesses that have not yet adopted EMV-ready terminals. If you have not upgraded your terminal, your business is vulnerable every time a chip card is swiped instead of inserted.
If your business is at risk, get in touch with us so we can help you identify the right solution for your business. Simply click the button below to get started on winning the fight against fraud.
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