Many consumers have recently been issued new credit cards from their banks and major U.S. credit card companies. The key difference with these new cards is that they are now fitted with a small metallic chip known as the EMV chip, which stands for Europay, MasterCard, and Visa — the three companies that created this standard. The purpose of the EMV chip is to deter fraud by making it increasingly difficult for credit card hackers to retrieve consumer’s private information.
Since October 2015, any businesses who have not upgraded their POS systems to comply with the EMV cards will be held liable for any major credit card transaction that is fraudulent if the card is EMV-equipped. This shifting liability now means that the burden falls on the businesses and not the credit card companies and banks.
While magnetic strip cards will still be accepted, it is highly recommended to upgrade any POS systems to comply with the EMV chip standard. It is best practice to examine the consumer’s identification card and compare that signature with the receipt signature, regardless if their card is EMV- equipped or not. These measures will decrease the likelihood of being held liable if any transactional issues arise.
If you have any questions about your obligations or compliance as an employer, please contact us at firstname.lastname@example.org or reach out to your Mitzel Group, LLP attorney directly.