New Credit Card Liability in EffectOctober 7, 2015
On Oct. 1, 2015, new credit card rules went into effect which will transfer fraud liability to merchants who continue to use old “swipe” credit card processing machines. To address increasing credit card fraud, the U.S. has formally moved over to chip-based technology, or EMV credit cards, which utilize a different technology than the old magnetic stripe cards, and are more secure.
As such, firms who accept credit card payments have been faced with updating all credit card processing machines to comply with the new cards being issued. Those firms that did not update their machines by Oct. 1 are now financially liable for any credit card fraud that takes place – a major shift in liability from credit card companies to the companies that accept card payments.
In testimony offered back in April, NSBA President and CEO Todd McCracken stated that this shift could be costly, not only in the new machines but also in terms of new software and employee training required, and urged Congress to keep a close eye on the transition to ensure small-business owners aren’t unfairly burdened.
NSBA’s corporate sponsor and credit card processing partner TransFirst has offered a number of resources for NSBA’s members, and will be holding a webinar, “The Deadline is Here – Is Your Business Ready for EMV Credit Cards?” tomorrow, Oct. 8 at 12:00 p.m. EDT. Please click here to register.