Since the October 1 liability shift, merchants across the country have rushed to adopt EMV-enabled payments systems. With this high rate of migration, the payments industry is observing an exorbitant rate of fallback transactions coming from newly deployed EMV terminals.
In these cases, chip cards presented at a chip terminal cannot be read due to technical issues with the chip. As a result, merchants are pressed to follow fallback acceptance procedures to ensure compliance with card acceptance rules. However, because these fallback procedures require merchants to revert to less secure transaction methods, such as magnetic stripe or key-entry, they must be especially careful when executing fallback purchases.
To navigate the proper fallback procedures, keep these … more