Liability Shift for Fraudulent Purchases

Starting in October 2015, the liability of credit card purchase fraud will fall on business owners that are not using EMV technology. Presently, if you accept a fraudulent payment, the bank issuing the card is liable for the amount of the fraud and the bank will absorb the cost. However, there will be a “liability shift” that will be actualized in October 2015. If a business accepts a fraudulent payment, and does not have an EMV card reader, the business will absorb the cost of that fraud. The banks are no longer going to be liable. For more information on the EMV technology, contact the Michigan State University Extension.