IMPORTANT: The Upcoming EMV Liability Shift Does Not Apply to Online Purchases
EMV is a global payment system that uses a microprocessor chip installed on credit and debit cards to make it almost impossible to use counterfeit credit cards in card-present transactions, which are also known as in-store purchases. Starting October 1, 2015, there will be a “liability shift” in the United States for card-present transactions only. If the financial institution providing the merchant account supports EMV but the merchant does not use a reader that supports EMV transactions, the merchant may be liable for fraudulent card-present transactions and transactions using counterfeit cards. T his liability shift does not apply to online purchases made through Doubleknot (or any other online purchase), to any other kind of card-not-present transaction, or to transactions made with a lost or stolen credit card. The liability and chargeback rules for these transactions remain the same.