Retail Dive reports that of the businesses surveyed by Randstad Technologies, only 58 percent stated they are actively preparing or making the EMV chip transition. Despite this resistance, the same survey reported that two-thirds of IT professionals said that chip cards are needed to enhance fraud security for businesses.

Each year, card fraud costs the U.S. economy around $8 billion, however, many experts have stated that if there is not increased adoption of EMV technology, this number will rise to over $10 billion. One of the major efforts behind this EMV transition is to lessen the chances of card fraud, yet through businesses delaying the transition, they are instead facing an even greater liability. 

This October deadline, is not truly a deadline, as it is more accurately called the EMV liability shift. This means that while card issuers currently bear the cost of counterfeited cards, with this new rule, some merchants who have not made the transition to EMV capable software and hardware can be held liable in the case of fraud. Two of the chargeback reason codes all businesses should be aware of with this new shift, are Counterfeit Transaction and Chip Liability Shift. 

This first new code specifically addresses counterfeit transaction disputes. This is when a customer presents a chip card and the merchant is not equipped with an EMV capable system. If fraud occurs, the business will be liable, yet if the merchant does have an EMV capable device or application, they will be protected from chargeback liability. The second code deals with fraud card present environment and again, a merchant will not be held liable if they have a system that support EMV chip cards and if transactions are processed correctly.

"Some merchants may not be ready for EMV yet, but should continue to work diligently in order to avoid becoming the target of fraud in the future," Payment Week writes. 

Contact Vantage today to learn about our EMV payment processing systems and reference www.vantagecard.com/emv for more on currently available EMV information and regulations.