Beginning October 1st, merchants are now held fully liable for any losses due to credit card fraud if they haven’t made the switch to EMV cards. EMV, which stands for Europay, MasterCard, Visa, are credit cards equipped with computer chips. They are considered much more secure than magnetic strip cards. Plus, the EMV card is standard in many parts of the world.
What did the October 1st switch mean?
October 1st marked the “liability switch.” By this date, retailers and merchants were expected to process the transaction with a chip reader instead of the magnetic strip. If they don’t, the retailer will be held liable in the event of a fraudulent transaction. However, if merchants use a chip reader, the card issuer will be held liable. This gives the merchant a clear incentive to switch to chip credit cards.
So, many retailers across the country have switched to EMV cards. And though the deadline to switch to chip has already passed, it's estimated that more than 6 in 10 American credit card holders don’t have chip-enabled credit cards yet. If you are among the 60% who still has a magnetic strip card, call your bank or apply for a credit card today.
Source: USA Today
