Counterfeit credit cards are a significant problem in the U.S. In fact, almost half of the credit card fraud in the world occurs in the U.S. As we had previously described, the new EMV payment cards include a “liability shift” as of October 1, 2015, which an incentive for both merchants and card issuers to increase card security and reduce counterfeit card fraud.
A post on the Consumer Products Law Blog provided background on ways to implement EMV technology and how alerting customers to the upcoming changes may be in merchants’ best interests. If a merchant uses the new chip-and-PIN technology but the consumer doesn’t know his/her PIN, what action will the merchant take when the consumer cannot complete the checkout process?
For an in-depth analysis of EMV liability shift please read our colleagues’ post, “Transaction declined: are you ready for credit card chips?” on Norton Rose Fulbright’s Consumer products law blog.