Agents, Merchants

Who Pays for Chargebacks?

Upon whom does chargeback liability fall if banks are responsible for distributing chip cards?

As of October 2015, liability for fraudulent credit and debit card transactions shifted from issuers to merchants, unless those merchants have migrated to POS technology that accepts credit and debit EMV chip cards. As long as merchants have implemented EMV-compliant point-of-sale technology, they are considered EMV-compliant and as such are free from liability for fraudulent card-present transactions. Therefore, if merchants are EMV-complaint, they need not worry about chargeback liability, regardless of the degree of which EMV chip cards have saturated the market.