The migration to EMV chip cards has been a positive experience for some and a less-than-ideal experience for others. Because EMV in the U.S. is still in its early stages, there are many kinks to iron out.
Merchants, for example, have recently retaliated against major card brands due to liability shift loose ends. Some merchants claim that, although they were armed and ready with EMV-capable terminals by the October 2015 liability shift, the required “certification process” to pass the fraud to financial institutions could take years to complete.
Hear from two TMG experts about the recent merchant backlash in this video:
Two small businesses in Florida, Milam’s Market and Grove Liquors, recently filed aclass-action lawsuit against the four major card networks – Visa, MasterCard, Discover and American Express. According to a BankInfoSecurity article, the lawsuit is asking the court to order that the card brands and financial institutions pay affected merchants damages to compensate for fraud expenses that have been shifted back. If the case is successful, the card brands may be required to provide temporary certifications to merchants that upgraded terminals and are ready to move forward.
