Months After EMV Compliance In The US
According to Brian Kilcourse, partner of Paula Rosenblum of Forbes, the new payment standards are used to shift risks from the banks to retailers. Kilcourse believes consumers haven’t had risks associated with credit cards till now.
Gray Taylor, Executive Director of Conexus, has recently talked about the liability shift. Taylor thinks banks transfer liability to retailers in order to stay away from risks. As he mentions, the costs of fraud have to be borne by merchants.
According to Greg Buzek of IHL Group, after the EMV liability shift in the US, only 6 percent of merchants have met the deadline. On the other hand, only 8.5 percent of merchants are ready to accept EMV.
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Different Approaches To Chargebacks
According to Rosenblum, the retail industry spent a lot on PCI-DSS compliance, which would never prevent data theft adequately. Today, another fortune is being spent on card readers and software.
According to Buzek, retailers shouldn’t be charged for fraudulent transactions associated with lost or stolen cards. In fact, retailers become liable for all these charges. Moreover, retailers are now trying to keep Track 2 data, which will be necessary for fighting merchants and acquiring banks in case they deal with fraudulent charges. Previously, retailers didn’t store the mentioned data as part of the PCI-DSS.
Taylor thinks banks show a “charge-them-all-back” approach to chargebacks, thus counting for drastic consequences for retailers engaged in small and mid-size businesses. He believes not providing a strategic plan that would go a long way in upgrading the world’s largest payment system is mostly harmful to small businesses.
Taylor considers PIN authentication to be the most effective means to fight fraud and is sure another few billions are going to be invested in mobile, encryption, and tokenization.