Can customer simply plug in the new Chip & Pin ready devices and expect to take chip payment transactions right away?
No. Manufacturers like
Verifone and Ingenico sell EMV certified hardware, which means the hardware itself has been certified to comply with EMV standards. However, for
actually processing an EMV transaction software which interfaces with the EMV hardware on one end and with the payment processors and the credit card associations on the other end must be implemented. Highline is the first softwares in the US that has been certified for EMV with all four credit card associations (Visa, MC, AmEx, and Discover) for contact and contactless and its customers are already processing live EMV transactions. Most legacy software providers in this country have not yet upgraded their software to support EMV, and as it seems will not meet the October 2015 liability shift dead line.
What is the EMV liability shift?
Currently, if a customer uses a counterfeit credit card, it is the bank that bears the liability. The card issued will return the money to the real owner of the card, and the acquiring bank will transfer the money to the merchant as it would normally do for legitimate cards. Starting in October
2015 merchants will be liable
for fraud that occurs on chip-
enabled cards unless they
accept EMV cards.