Batter Up: EMV Puts Card-Not-Present Fraud on Deck

In the world of charge back liability, who’s responsible for what? That’s what’s important for merchants to know. TODAY, if the card is present, the issuing bank for that card is generally responsible for any counterfeit losses. However, on October 1, 2015, that changes. Then, in card present transaction, the company responsible for the EMV information has to take on counterfeit losses.
What’s important for banks: If the bank issues a non-EMV card, the responsibility’s on them. But, if the card had an EMV chip and the provider did not process the transaction, then they may be responsible for counterfeit losses.
What’s important for merchants: Legally, the provider can pass responsibility for losses onto the merchant if their equipment isn’t capable of processing EMV transactions.