One interesting new change during the switch to EMV cards for merchants and restaurants that accept tips is that the inserted chip card must stay in the terminal until the tip amount is put in and the transaction is complete. This change is made in an effort to lessen issues that occur with gift cards and prepaid cards regarding tip adjusting. However, Hotel News Now reports that there are basic rules all hotels, restaurants and retailers should be aware of that will go into effect after October 1.

According to Visa, when a magnetic card is swiped at a traditional terminal, the merchant is not usually liable as they are now. However, now when a chip card is used at a non-chip card compliant terminal, if the purchase was counterfeit, the liability has now shifted to that of the merchant that did not upgrade to more secure card processing software and hardware. Finally, if a chip card is used at a chip-enabled terminal, the card issuer will continue to bear the responsibility if fraud does occur. The merchant will not be held liable.

"Making the change to EMV is not an overly complex effort, but it does require funding and time, both of which are always at a premium and need to be prioritized with other initiatives and needs," she said. "The change also requires the coordination and cooperation of the merchant banks, software and hardware suppliers, middleware vendors and installation providers. Managing all of these groups will be very challenging given the short time frame." 

Still unsure about the new liability shift? Visit our helpful EMV resource page to learn how to navigate your business through this transition. Though the chip card deadline is not a mandate, it is recommended to reduce your company's liability should fraud occur during a transaction. Contact Vantage today to learn more about our chip card-capable Z8 Dejavoo Countertop terminal solution that will keep your business up to date through all the new liability shift regulations. Automated nightly updates will also keep your service current and secure. Visit our website to learn more about our services and solutions!