EMV Merchant Liability Shift: Who Covers the Cost of Credit Card Fraud Starting October 1st?

Understandably, one of the biggest concerns about the EMV changes that take effect here in the U.S. on October 1st is the impact of the merchant liability shift.

Right now, as it has been for the longest time, card issuers are the ones who bear the brunt of most credit card fraud.

Starting October 1st, this will change. Under certain conditions, card issuers are no longer going to cover a merchant’s risk associated with transactions that result in fraud.

So what are those conditions? We’ve developed a simple chart to give you a concrete understanding of the different possible scenarios and how they will affect merchants that accept credit cards. 


Bottom Line …

As more and more issuers roll out EMV chip cards, you, the merchant, will become hard pressed to find a scenario where your customers are presenting magnetic stripe cards.

That means in order to protect your business, you should upgrade your terminals now to save yourself from having to cover the cost of credit card fraud.

Constellation Payments Can Help …

We offer a full line of chip-certified terminals, so you can accept chip cards and safeguard your business. Equipment is affordable for both one-time purchase and for a low monthly fee.

Using software? We work with dozens of software partners (See our Partners Page) and specialize in software integration, which means we can deliver a terminal enhanced to interface directly with the software you use.

Not using software? We also offer standalone chip-certified terminals. Give us a call at 888.244.2160 or complete the form on this page to learn more and order a terminal today!

Angela Summa is the Vice President of Constellation Payments. She is responsible for business development, implementation, channel partner support, and merchant support. Her goal is to ensure businesses offer the highest level of payment processing security and ease of processing to customers. You can reach Angela by sending an email to

Grey Divider

Subscribe to our blog, How Payments Are Done!CSIpay_blog_subscribetoday-(2)

Get continual educational guidance on the approaching merchant liability shift, how to prepare for EMV changes and how to protect your business from risk and fraud.

Visit, enter your email address into the ‘Subscribe to Our Blog’ box and we’ll send our best advice to your inbox.

Share this article:

Leave a Reply

Your email address will not be published. Required fields are marked *