EMV Chargeback Relief Gives Merchants More Time To Upgrade
We are quickly approaching the one year anniversary of the EMV liability shift. The transition to EMV has been rocky at best and quite a pain point for many merchants and processors. Slower checkout times, delays in certifications, and the lack of software updates have forced small business owners to hold off on upgrading their terminals to the new EMV standard. Unfortunately, some merchants who opted to wait on upgrading to an EMV terminal or updating their software were hit with a new problem, Chargebacks. After the October 2015 deadline the chargebacks due to stolen or counterfeit cards were passed on to the merchant and chargebacks spiked by over 50%. Merchants who had never before seen chargebacks were starting to see them more frequently. Merchants fought back with a class action lawsuit and Visa recently announced a new policy to ease the pain and give merchants a little bit more time to upgrade.
Part of Visa’s new policy will stop all chargebacks for counterfeit fraud under $25 from going to acquirers and their merchants, effective July 22. As of October, it will also cap at 10 the number of counterfeit card chargebacks of $25 or more an issuer can send back to merchants on any single card account. Issuers will have to take responsibility for any such chargebacks after that.
This is great news for small businesses that have decided to wait on upgrading to the new EMV standard. The policy end in April of 2018 so merchants will still have to upgrade to EMV, but it does buy time for merchants who were waiting until more of the bugs were worked out of the system. With Visa and Mastercard speeding up the certification process, now is a great time to upgrade your terminal if you have been holding off. Give us a call and let one of our experts find the best EMV solution for your small business.