Merchants have seen a dramatic spike in the number of chip-and signature cards their customers use. That’s because, on Oct. 1, 2015, the major credit card networks launched the first phase of the “EMV Liability Shift.” According to the rules established by the shift, the liability for fraud on certain kinds of transactions shifted away from the credit card networks and onto the party—either the merchant or the issuing bank—with the least EMV-compliant technology.
The deadline of Oct. 1, 2015 only represented the first phase of the shift—those involving face-to-face, card present transactions. The liability shift for ATM transactions is Oct. 1, 2016, for MasterCard and Oct. 1, 2017, for Visa. Given the limited availability and waiting lists for compliant equipment surrounding last year’s deadline, merchants should consider planning for the ATM phase of the liability shift as soon as possible.