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New Chargeback Policy Introduced By American Express Prevents Chargebacks

In June, American Express joined Visa and announced its new policies. These new chargeback policy changes aim to cut fraud costs for merchants who face dramatically increased chargebacks since the EMV liability shift in October 2015.

New Policies by Amex

American Express told it would not require merchants to be liable for in-store fraud on counterfeit transactions under $25. Reasons for the chargebacks explosion on card-present (CP) transactions since the beginning of 2016 are no yet clear. American Express research shows 40% of the mentioned chargebacks are for transactions under $25, which could rarely be met before the EMV liability shift.

The major card brands have been busy getting rid of the obstacles associated with the EMV adoption this summer. These problems have even made retailers take legal action against the card brands and issuers.

Payment processing safety and security are major concerns to merchants running businesses online. It is of utmost importance to turn to a reputable payment processing company like eMerchantBroker to open a reliable merchant account for one’s company. EMB is voted the #1 high risk merchant account provider in the US and boasts an A+ rating with the Better Business Bureau. EMB offers unmatched security and protection from fraud to help you prevent chargebacks and increase revenue.

Major Card Brands Trying to Curtail the Increase in Chargebacks

Each of the major card brands put efforts to limit the increase in chargebacks. In addition, they launched products and policies aimed at either speeding consumers through lines or improving the efficiency of the certification process.

According to Mike Matan, vice president of Global Network Business for American Express, fighting fraud is an ongoing priority for American Express. Matan notes they consider the migration to EMV in the United States a time-consuming effort. This is the reason why the company is applying these policy changes.

American Express believes the changes to its chargeback policy will provide flexibility to merchants who need more time to upgrade their point-of-sale (POS) terminals to accept EMV chip cards.