A very important shift in liability will be happening with your bank you’ll want to be aware of. On October 1, 2015, the liability for fraudulent credit card transactions will shift from the merchant or the bank (whichever is least).
What On Earth Does That Mean?
Basically, when a fraudulent bank card transaction is made; there will be a determination made as to who is liable for the cost. If you - the merchant - have the EMV transactions enabled; you will not bear the liability.
How Do I Know If I’m Liable?
If you are currently accepting online payments; you will need to have the payments encrypted by Tokenization. If you don’t, and are still using the old system: running a transaction with a swipe and signature - you can be liable for any fraudulent transactions if the customer has a chip embedded card. The system also works in the opposite way. If you - the merchant - have a new terminal, but the bank hasn’t issued a chip and pin card to the customer, the bank is held liable.
How Do I Tokenize?
- Keep up with system and software updates.
- Make sure all of your cards are embedded with a microchip, and have a PIN
- Check your online systems for the Tokenization encrypted payment system. If you don’t have it, download it.
The sooner you dot your i’s, the less likely you are to be held liable for fraudulent transactions.
The TEIL Firms, LLC “Where Excellence Matters”