Does EMV affect you?  Only if you are a  Card Present Operation

by Jennifer Guy, Credit Card Specialist

EMV is the chip card technology that is in the news these days.  It has been being used in Europe for years.  The US is a late adopter, but that begins on October 1st.

Does it affect me?

ONLY IF someone comes in and hands you a credit card which you then swipe.  If that is the case, then you need a new terminal to handle the chip cards.

Why do you have to do this?
Because you become liable for any fraud perpetrated against you.  If you accept a card by swiping it (yes, you can still swipe), and that card turns out to be fraudulent, then you pay for that fraud.  If you have the chip machines, and accept a fraudulent or stolen card, then the bank will pay for the fraud.  Here is an official discussion of this phenomenon.
“One key component in the EMV discussion is its accompanying liability shift. This liability shift means that those issuers and merchants using non-EMV compliant devices that choose to accept transactions made with EMV-compliant cards assume liability for any and all transactions that are found to be fraudulent.
MasterCard defines the liability shift this way:  The party, either the issuer or merchant, who does not support EMV, assumes liability for counterfeit card transactions.  Understand that by issuer, the card companies do not mean themselves; the term refers instead to banks, credit unions, and any other financial institution issuing credit or debit cards.    Read more here.
Stay tuned – we fully expect that if security holes get plugged in the retail world, the card-not-present world will become more attractive to the fraudsters.  Don’t get complacent!
From Joel:
We work every day to make and keep TAC secure.  There has never been a breach of TAC and we want to keep it that way.  We hold our customers to high standards in their local set up and we hold ourselves to a higher standard for our products and services.  We are ahead of the game on security and we plan to stay that way.
– Joel Smith.
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