“Liability Shift” Posts

How Swiping an EMV Card Cost One Business $5,368

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 Although this shift occurred a few years ago, many businesses still use non-certified EMV terminals or rely on outdated swipers due to cost constraints, antiquated providers and lack of pressure to adopt new technology. The problem is, relying on old technology only works until it doesn’t. In the case of one photography business, swiping a chip card resulted in a chargeback of $5,368.75. With high-ticket-value services and products, the cost of going one…

EMV Liability Shift: Explained

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. There is an entire underground economy powered by stolen credit cards. With traditional magnetic stripe cards, a fraudster could simply obtain one, make copies using a cheap machine and hire people to go shopping. The credit card issuers (MasterCard, Discover, Amex and Visa) were liable for these unauthorized transactions, resulting in losses that exceeded $16 billion in 2014, according to WalletHub. The staggering losses encouraged the card issuers…

What Is a Chargeback?

What Is a Chargeback?

Providing a simple chargeback definition isn’t easy because there are multiple types of chargebacks that can be filed. While they all share the same desired outcome, they differ in intent. But first, what is a chargeback? A chargeback is a reversal of a prior transaction that results in the reimbursement of a customer’s funds. It was originally invented as part of The Fair Credit Billing Act of 1974 to protect consumers from fraud. Essentially, if a customer’s credit card is stolen, he can chargeback any transactions made by the fraudster and have the transactions removed from his…

How to Fight a Chargeback (and Win)

How to Fight a Chargeback (and Win)

Credit card fraud is bad for everyone but the fraudster. As a consumer, you might spot fraudulent transactions on your credit card statement that send you into a panic. You’re anxious to receive financial reimbursement, safeguard your identity and determine how your payment information was obtained. Businesses stand to face huge losses as well: They absorbed 38 percent of U.S. fraud losses in 2014, totaling $2.95 billion. If a business can’t properly fight the fraud, it takes the loss. The trend isn’t letting up. Monthly fraud attempts and the percent of revenue lost to fraud…

EMV Compliance Is Still a Dream for Most Businesses

EMV Compliance Is Still a Dream for Most Businesses

“Why are we using these slow EMV cards?” We get this question a lot from businesses and consumers alike a full year after the EMV liability shift. With this change, the major card brands (Visa, MasterCard, Discover and Amex) lifted the responsibility for fraudulent transactions off their shoulders and onto businesses’ for improperly swiped EMV cards. The intent was twofold: Eliminate fraudulent transactions due to cloned cards Encourage EMV compliance by merchants Why Your Chip Card Is Still Being Swiped It’s easy for consumers to take the importance of proper chip-card processing for granted. After all, only 44 percent…