Credit unions should remind their business and retail members of key fraud liability shift dates for EMV (Europay, MasterCard, and Visa) compliance.
MasterCard set Oct. 1, 2016, as the deadline for making ATM units compliant with chip-embedded units that can read MasterCard data.
Visa intends to shift fraud burden from card issuers to ATM owners by Oct. 1, 2017, but both Visa and MasterCard have postponed the deadline for activating the EMV liability shift at gas stations’ automated fuel dispensers until Oct. 1, 2020.
Visa based that decision on a realization that gas stations, because of their dependence on volume sales and narrow operating margins, must make a more gradual shift to EMV compliance.
What does the fraud liability shift mean? If retailers’ point-of-sale units rely on magnetic stripes as their sole means of confirming a transaction, those retailers—not the financial institution that issued the card—carry the burden of paying out of pocket for the dollar amount of fraud on units skimmers have compromised.
A National Retail Federation survey projected that 86% of merchants expected to have systems up and running by the end of 2016.
As millennials emerge in the workplace, CU leaders modify their management approach and expectations.