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Are you ready for EMV?

Chip cards are here to stay, and unprepared retailers may be at risk
By Mark E. Battersby
Published: September 15, 2015
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There is a storm cloud overhead for every U.S. retailer who either accepts credit and debit card payments or uses those cards for his or her own purchases. They face a so-called liability shift, where banks and card issuers are expected to shift liability for fraudulent card transactions to businesses that are not ready for a new, more secure card.
Until now, if a credit card transaction was conducted using a counterfeit, stolen or otherwise compromised card, losses from that transaction usually fell back on the payment processor or issuing bank. But as of Oct. 1, any U.S. business that doesn’t have an EMV processing device will discover that banks are likely no longer liable for those losses.
EMV—which stands for Europay, MasterCard and Visa—is a global standard for cards equipped with a small integrated circuit (or “chip”) that, along with the appropriate technology, is used to authenticate transactions. That technology, often referred to as “Chip and PIN,” is widely used elsewhere in the world, including Canada. Now U.S. card issuers are embracing this new technology.
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