“Liability Shift” Posts

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 Explained: The Impact of the Liability Shift

EMV Explained: The Impact of the Liability Shift

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 to adopt new technology to fight fraud. Enter EMV. EMV Explained: The Science of EMV Chip Cards The U.S. was not a trailblazer when it adopted EMV (Europay, MasterCard and Visa)…

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…

Why You're Susceptible to a Bank Chargeback

Why You're Susceptible to a Bank Chargeback

Previously, the only time businesses received credit card chargebacks was when a customer was unhappy with a product or service. Most business owners have, understandably, never had a chargeback. It has always been understood that if you provide good service and quality products, your customers will be happy. But times they are a-changin’! Banks are now issuing credit card chargebacks if they determine an issue with a transaction, even without your customer's consent. Now you’re probably thinking, “But how can banks get away with that?” Well, since the liability shift took place, there’s a new type of chargeback…