Money Matters

Beware of the Fraud Liability Shift

Starting in October 2015, if you accept credit cards, you may be liable for any fraudulent activity related to certain transactions — not the bank, as has been the case in the past.

Starting in October 2015, if you accept credit cards, you may be liable for any fraudulent activity related to certain transactions — not the bank, as has been the case in the past. “When the fraud liability shift happens, basically any business — big or small — that accepts credit card payments will be dramatically impacted,” says Sam Zietz, CEO of TouchSuite, maker of point-of-sale systems for salons. “Starting in October, if a client has an EMV (scannable e-chip) credit card, but the salon that is processing the card does not have the technology to support it and only has the current ‘swipe and sign’ terminal, then that merchant (the salon owner) is liable for any fraudulent activity related to the transaction.”

The move to EMV technology represents an effort to combat fraud and increase card security. “Currently, a cardholder’s information is stored on a magnetic stripe found on the back of the card. With EMV technology however, cardholder information — and more — is stored in a chip that is embedded on the front of the card,” he explains. “EMV chip cards contain embedded microprocessors that provide robust transaction security features and other benefits not possible with current magnetic stripe cards.”

You can find additional information on EMV and what you can do to prepare for this transition at www.touchsuite.com/emv.

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