The card associations have introduced new EMV (CHIP) enabled credit/debit cards that consumers and businesses have begun using recently. Currently in effect, a global counterfeit liability shift will be instituted in the U.S. for point of sale transactions. With this liability shift, the party that is the cause of a CHIP transaction not occurring (i.e., either the issuer or the merchants acquirer processor, or the merchant themselves) will be held financially liable for any resulting card present counterfeit fraud losses. The shift helps to better protect all parties by encouraging CHIP transactions that use unique, dynamic authentication data.
Article ID: 36000106344