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#2207788 - 03/05/19 03:48 PM EMV Liability
Questions Offline
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Joined: Jun 2009
Posts: 83
Just want to make certain I am understanding this correctly. Our ATMs have been upgraded to be EMV compliant. If a non-customer uses our ATM to make a transaction, and his card is not EMV compliant, the liability for any fraud claims shift back to his bank because it is the least secure party, correct?

What if his card is EMV compliant, but there is an issue with the transaction (possible damage to the chip), so the transaction is processed using the mag stripe, where does liability fall for a fraud claim? Do we as the ATM owner have liability here?

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eBanking / Technology
#2207823 - 03/05/19 05:18 PM Re: EMV Liability [Re: Questions]
rainman Offline
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rainman
Joined: Nov 2004
Posts: 2,974
The liability is based on whether the fraud is counterfeit or non-counterfeit, whether the machine is EMV enabled, and whether the transaction was processed as a chip transaction or a fallback transaction, and if it was processed as a fallback transaction, whether the transaction was properly identified as such when it was transmitted to the issuer.

For Visa, you can check the rules starting at 5.9.2.5, here: Visa Rules
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#2207848 - 03/05/19 07:03 PM Re: EMV Liability [Re: Questions]
Valley girl Offline
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Joined: Aug 2014
Posts: 243
TX
I didn't think VISA guidelines applied to ATM transactions since they run on a PIN network. I know we can report an ATM error (cash not received) but I think the issuer is out whether the card is fraudulent or not if consumer says they didn't do the transaction.

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#2207873 - 03/05/19 09:58 PM Re: EMV Liability [Re: Questions]
rainman Offline
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rainman
Joined: Nov 2004
Posts: 2,974
I gave Visa as an example. The liability shift rules do depend on the network; if the transaction runs on Visa rails, it is subject to the Visa rules. My understanding is that many of the payment networks have adopted the same or similar shift rules, including Accel, American Express, China UnionPay, Discover, Mastercard, NYCE, SHAZAM, and STAR. I'm sure there are others.
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#2208021 - 03/06/19 09:22 PM Re: EMV Liability [Re: Questions]
Valley girl Offline
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Joined: Aug 2014
Posts: 243
TX
Thank you for the clarification rainman. And thank you for the "rails" - I thought I was the only one using that term when I try to explain different networks to our employees. There is so much to know about all of this, it does get overwhelming at times. And apparently I am in a funk from not having any easy disputes this week.

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