In October 2015, the much-discussed and highly publicized Payment Networks’ Liability Shift associated with EMV, (EuroPay, MasterCard, and Visa) is scheduled to take place.
This is a significant change for banks, credit unions, credit card issuers, retailers, and more.
EMV is a fraud-reducing technology that can help protect issuers, merchants and consumers against losses from the use of counterfeit and lost or stolen payment cards at the point-of-sale. EMV cards are embedded with a microprocessor or smart chip that interacts with the merchant’s point-of-sale device to make sure that the payment card is valid and with the use of a PIN that it belongs to the person using the card. This kind of chip technology adds layers of security against fraud and is virtually impossible to duplicate.
In 2014 is cost US Retailers $32 Billion dollars due to the fraud spike. This is a 38%increase over 2013. Fraudulent payments account for 0.68% of retail revenue which is up from 0.51% in 3013. The cost of fraud prevention has gone up too. It costs $3.08 for every dollar lost to fraud which is up from $2.79 in 2013.