Shifting the Liability

Card associations have adopted policies and deadlines that will require merchants and financial institutions to migrate to EMV chip cards.

March 1, 2013

Card associations have adopted policies and deadlines that will require merchants and financial institutions to migrate to EMV chip cards.

Some important dates in that migration are:
 
April 1, 2013: Visa and MasterCard require U.S. acquirer processors and subprocessor service providers to support merchant acceptance of EMV transactions.
 
April 19, 2013: MasterCard shifts ATM transaction liability to ATM owners and operators for counterfeit fraud on interregional transactions—involving Maestro cards from outside the U.S. used at an ATM in the U.S.—if a chip card is presented at an ATM that isn’t equipped for chip transactions.
 
Oct. 1, 2015: Visa and MasterCard shift counterfeit fraud liability for card-present transactions at the point-of-sale to a merchant’s acquirer if a contact chip card is presented to a merchant that hasn’t adopted a contact chip terminal, except for merchants that sell fuel.
 
MasterCard will extend beyond that base to offer a full liability shift to merchants when more than 95% of a merchant’s transactions originate from an EMV contact and EMV contactless terminal.
 
October 2016: MasterCard’s ATM transaction liability shift for ATM owners and operators extends to U.S. cards as well as interregional cards.
 
MasterCard is expected to introduce a liability hierarchy that favors chip cards for all MasterCard branded products in the ATM channel.
 
October 2017: Visa’s ATM transaction liability shift will apply.
 
For fuel-selling merchants, Visa and MasterCard liability shift takes effect for transactions generated from automated fuel dispensers. MasterCard will continue to extend its full liability shift to merchants meeting the 95% provision.
 
Sources: Visa and MasterCard