Credit Card Liability Shift

Have you heard about the major shift in U.S. credit cards and the liability shift for point-of-sale (POS) terminals coming this fall? Soon, you and I will receive new credit cards with EMV—Europay, MasterCard, Visa—chips embedded in them. EMV is the global standard for interoperation of integrated circuit cards, or chip cards, and POS terminals and ATMs for authenticating credit and debit card transactions. This October, the new chip cards will make buying goods and services a completely different experience.

This shift is all about reducing credit card fraud. The chip has encrypted data, making the card more secure and difficult to counterfeit. Right now, if credit card fraud occurs at a merchant, the credit card company usually covers it. On October 1, if a merchant doesn’t accept EMV chip cards and the transaction is fraudulent, the merchant will be liable for the costs.

Merchants need to upgrade their POS systems now. They need to get educated. They need to learn about EMV.

Sage ERP Insights

Sage ERP Insights – who has written posts on Sage ERP Insights.


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