--- title: EMV Fallback And Putting Your Business at Risk description: You initiate an EMV fallback whenever you swipe a chip card. Learn when this isn’t a secure business practice. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-fallback-risk.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. Get time back and spend it with furry patients.](https://www2.payjunction.com/payment-processing-veterinarians) - [Dental Simplify patient payments with multiple means of collection at your dental practice. Meet patient expectations and elevate the payment experience.](https://www2.payjunction.com/payment-processing-dentists) - [Auto Dealer Manage dealership payments by department, brand and location. Get automated reports for simplified end-of-day close and save on processing fees.](https://www2.payjunction.com/automotive-merchant-services) Developers - [API Documentation See how to embed omnichannel payment features into your software, using your choice of our intuitive integration methods.](https://developer.payjunction.com/) - [Developer Experience Explore the developer journey and learn how our full-service partnership model helps you maximize merchant payment adoption rates.](https://www.payjunction.com/payments/payment-api.html) - [No-code Payments Integration® Rapidly integrate payment acceptance features into any SaaS application in minutes using our easy-to-use Chrome browser extension.](https://www.payjunction.com/payments/no-code-payments-integration.html) - [Integration Marketplace Check out our growing marketplace of integrated solution partners that streamline payment acceptance and help businesses automate and scale.](https://integrations.payjunction.com/) [Pricing](https://www.payjunction.com/payments/pricing.html) Resources - [About Us Learn how our people-first culture at PayJunction helps us earn widespread recognition and awards.](https://www.payjunction.com/payments/about.html) - [Careers Join us in our pursuit to deliver exceptional experiences to customers and partners.](https://www2.payjunction.com/careers) - [Support Get helpful information about how to use features, troubleshoot problems and contact us.](https://support.payjunction.com/) - [Blog Gain useful insights into payment industry trends and PayJunction solutions.](https://blog.payjunction.com/) - [Guides Up your payment processing knowledge with our in-depth eBooks and White Papers.](https://guides.payjunction.com/) - [Tutorials Read articles and watch videos about how to use valuable features on the PayJunction platform.](https://blog.payjunction.com/topic/pj-university) # EMV Fallback And Putting Your Business at Risk ![EMV Fallback And Putting Your Business at Risk](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-fallback-risk.svg) [![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=48&height=48&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) Christina Lavingia](https://blog.payjunction.com/author/christina-lavingia) 2/25/2019 Let’s paint two seemingly harmless scenarios for you. A customer comes into your business and attempts to pay for a purchase with an [EMV chip card](https://blog.payjunction.com/emv-chip-readers). 1. The transaction fails despite your terminal being [EMV certified](https://blog.payjunction.com/emv-terminal-certification-explained/), so you decide to proceed by allowing the customer to swipe his chip card. 2. The transaction can’t be processed properly because your EMV terminal isn’t certified to process EMV transactions or doesn’t have an EMV slot. You work around this by asking the customer to swipe the chip card instead. Great, you got paid! However, both of these examples illustrate an EMV fallback. A fallback transaction occurs when you opt to process a payment with the next-best technology. However, there’s a big distinction between these two scenarios. In scenario No. 1, your business isn’t liable for fraud so long as you appropriately [identify the transaction](http://www.emv-connection.com/wp-content/uploads/2017/07/EMV-Fraud-Liability-Shift-WP-FINAL-July-2017.pdf) as an EMV fallback, authorize it online and it gets approved by the issuing bank. In contrast, scenario No. 2 falls squarely under the guidelines of the [liability shift](https://blog.payjunction.com/emv-liability-shift-explained/), which states that the merchant is liable for any fraud resulting from a swiped chip card. Why is there a distinction? In scenario No. 1, the business upgraded its technology to the new standard. In scenario No. 2, it didn’t. Swiping a chip card in an [outdated terminal](https://blog.payjunction.com/credit-card-reader-outdated/) undermines the security measures meant to keep your business and consumers safe from fraud. How so? As a quick refresher, EMV chip cards contain a computer chip that generates a unique code for every transaction. This makes it harder (but not impossible) for fraudsters to replicate cards. Chip card technology, however, only works when used alongside an EMV-capable credit card reader. An old-school terminal simply defaults to the traditional magnetic stripe for payment, which is far easier to copy. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## EMV Fallback Is a Security Risk As a business owner, allowing an EMV fallback to occur can put your business at risk in two ways. First, fraudsters are beginning to intentionally create faulty EMV chip cards with the knowledge that many business owners allow EMV fallbacks to occur. This is why scenario No. 1 detailed above is dangerous if you don’t properly identify the transaction as a fallback. Swiping a rejected EMV card could result in [chargebacks](https://blog.payjunction.com/fight-win-chargeback/) and cause your business to lose revenue and inventory (not to mention, [jeopardizing your merchant account](https://blog.payjunction.com/merchant-account-termination/) should you have excessive chargebacks). Second, swiping an EMV chip card in an outdated terminal could result in a [bank-initiated chargeback](https://blog.payjunction.com/credit-card-chargeback-banks/) even if the transaction wasn’t fraudulent. This is a measure the card-issuing banks implemented to dissuade merchants from swiping chip cards. Unfortunately, it can be incredibly challenging for businesses to obtain EMV-certified equipment due to lengthy [certification queues](https://blog.payjunction.com/emv-compliance-year-later/). Even if a provider claims to offer EMV terminals, the chip slot might be ineffective, resulting in EMV fallbacks on all chip card transactions. ## Avoiding EMV Fallback EMV fallback is a risk for your business, but you can mitigate it. 1. **Partner with an EMV-certified provider:** Look for a provider that is EMV Level 3 certified (the highest level) to ensure that you’re not paying simply for a credit card reader with an extra slot. If the equipment isn’t certified, you’re left with the same outdated technology you started with. 2. **Use a [credit card terminal](https://blog.payjunction.com/credit-card-terminal-guide/) that ensures proper processing:** PayJunction’s Smart Terminal has the ability to detect when a customer swipes a chip card or inserts a magstripe card. This can reduce incorrect processing of chip cards, which is especially important with a [customer-facing terminal](https://blog.payjunction.com/customer-facing-terminal-benefits/). It might seem like a lot of work (and expensive) to make equipment upgrades, but when the alternative is an increased rate of chargebacks, fraud and potential merchant account termination due to EMV fallback, it’s clearly worth the investment to upgrade to technology that will protect your business. ## Partner with an EMV Level 3 provider. Has your business accepted EMV fallbacks? Are you in the market for new EMV-ready terminals? Let us know how your search is going in the comments section below! *Editor's Note: This post was originally published in August 2017 and has been updated for comprehensiveness and accuracy.* [EMV](https://blog.payjunction.com/topic/emv) [Smart Terminal](https://blog.payjunction.com/topic/smart-terminal) [Chargebacks](https://blog.payjunction.com/topic/chargebacks) --- ##### [![Interchange Plus Pricing vs. Flat](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/interchange-plus-pricing-flat.svg) Interchange Plus Pricing vs. Flat](https://blog.payjunction.com/interchange-plus-pricing-flat) ##### [![Merchant Account Setup: Steps to Take](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/merchant-account-setup.svg) Merchant Account Setup: Steps to Take](https://blog.payjunction.com/merchant-account-setup) ###### About Author ![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=200&height=200&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) ### Christina Lavingia Christina Lavingia delights in crafting content that helps business owners fight fraud, reduce risk and process payments with ease. ###### Related Posts ## [![How Swiping an EMV Card Cost One Business $5,368](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-chargeback-case-study.svg) How Swiping an EMV Card Cost One Business $5,368 The 2015 liability shift transferred the financial responsibility for chargebacks resulting from incorrectly processed EMV transactions away from the card brands and onto businesses. Although this shift occurred a few years ago, many businesses still use non-certified EMV terminals or rely on outdated swipers due to cost constraints, antiquated providers and lack of pressure to adopt new technology.](https://blog.payjunction.com/emv-chargeback-case-study) ## [![POS Credit Card Terminal: The Advanced Shopping Guide](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-terminal-guide.svg) POS Credit Card Terminal: The Advanced Shopping Guide Investing in a POS credit card terminal carries obvious benefits. A combined 75 percent of consumers prefer to shop with a credit or debit card, so accepting credit cards opens your business up to a wider market than businesses that only accept cash. Some modern credit card terminals can also process alternative forms of payment, such as mobile payments. One downside is that researching credit card processing terminals can be daunting. What do you really need to know about EMV, NFC and PCI DSS?](https://blog.payjunction.com/credit-card-terminal-guide) ## [![EMV Liability Shift: Explained](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/emv-liability-shift-explained.svg) EMV Liability Shift: Explained The EMV liability shift refers to the 2015 transfer of responsibility for fraudulent losses from the card brands to businesses in cases when the fraud occurred on an incorrectly processed chip card.](https://blog.payjunction.com/emv-liability-shift-explained) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. Get Email Updates GO Thank you for subscribing! PayJunction is a Level 1 PCI Compliant Provider. PayJunction is a registered ISO of PNC Bank, N.A., Pittsburgh, PA. © 2026 PayJunction. All rights reserved. [Privacy Policy](https://support.payjunction.com/hc/en-us/articles/211053648) and [Terms of Use](https://support.payjunction.com/hc/en-us/articles/211053628). ```json { "@context": "http://schema.org", "@type": "BlogPosting", "headline": "EMV Fallback And Putting Your Business at Risk", "description": "You initiate an EMV fallback whenever you swipe a chip card. Learn when this isn’t a secure business practice. ", "image": { "@type": "ImageObject", "url": "https://cdn2.hubspot.net/hubfs/635739/BLOG/FEATURED%20IMAGES/emv-fallback-risk.svg" }, "author": { "@type": "Person", "name": "Christina Lavingia" }, "mainEntityOfPage": "https://blog.payjunction.com/emv-fallback-risk", "datePublished": "2019-02-25", "dateModified": "2023-05-31", "publisher": { "@type": "Organization", "name": "PayJunction", "logo": { "@type": "ImageObject", "url": "https://cdn2.hubspot.net/hubfs/635739/logo-400px.png" } } } ```