With the recent shift to EMV processing, there has been a change in who has liability for EMV processing. There are two aspects to this, card present transactions & card not present transactions.
It is important to note, if you are processing transactions through GeoTix on a computer all the transactions are considered card not present because it is through a browser based system. The second half of this article will apply to you.
For card present transactions:
The main thing to understand about chargeback liability with EMV is that the regulations now spread responsibility more evenly between merchants and card issuers. For example, if a merchant does not have the ability to process an EMV card, and fraud occurs, the merchant is not liable for the resulting losses. However, if the merchant has an EMV capable device, but does not process a chip card as an EMV transaction, then the merchant assumes 100% of the liability for that transaction. So the implication is that if you have an EMV capable machine and are presented with a chip card, do not manually process the transaction by key entering the numbers. Fraudsters know that key entered transactions are easier to get past the security controls, but retail merchants need to know that they are assuming all the risk for manually keyed transactions.
Similarly, if you have an EMV capable terminal but the machine is not updated to process EMV chip transactions, also called EMV enabled, then the merchant assumes 100% of the fraud liability as they have the right equipment to process chip transactions, but did not process the transactions with the chip functionality. So if you have EMV capable machines as a small business owner, it is crucial that you make sure that you are processing all chip cards with the chips instead of the magnetic stripe.
For card not present transactions:
It is important to note that the shift in liability for fraud and chargebacks under the new regulations does not apply to transactions made online or over the phone. Since EMV technology does not work for online/phone transactions, the shift does not affect merchants who only sell items in the card-not-present environment.
Online customers still need to type in card numbers to make a purchase, so if fraud occurs it will be handled by the card issuer based on their existing guidelines and policies. While it is not a one-size-fits-all solution to eradicate fraud, EMV technology will drastically reduce the amount of suspected fraudulent transactions at retail merchants.
For the full article: