Non-compliant stores are now liable for any fraud related to the card portion of a transaction.
NATIONAL REPORT — Despite a request made earlier this month by several industry groups to again push back the deadline for EMV compliance on the forecourt, the major financial companies decided to push forward with the original deadline, meaning the EMV liability shift has now arrived.
As of this past Saturday, April 17, non-compliant stores are liable for any fraud related to the card portion of a transaction at their location, rather than the card issuers taking on this burden — and this can easily become a significant number depending on the amount of fraud that takes place.
“In some locations, they may not see anything in terms of fraud, but as the year goes on, and especially next year, you will see the fraud hotspots shift,” said Paul Kern, executive director of product management at NCR Global, a hardware and software provider based in Atlanta. “Those who are now impacted by fraud in Florida or Texas, for example; if they don’t convert, they will get destroyed by the amount of fraud, but then as they become compliant, you will see fraud move to the retailers who were not impacted before.”