On October 1, new rules related to credit card fraud take effect, and if you haven’t upgraded to chip-reading technology for your credit card processing, you could be liable for fraudulent payments. It’s all a part of the roll out of new chip-based cards under the EMV (Europay, MasterCard and Visa) global interoperability standard, and new compliance language will place the liability for fraud with whichever party is using older technology.
That means if you have a chip-enabled reader and your customer only has a magnetic strip card, the bank that issued the card is liable for fraud. The opposite is also true. If you haven’t upgraded to the new technology, and there is fraud with an EMV card, you’ll be left paying the bill.
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