Square Will Absorb its Customers’ Liability for Fraud During EMV Shift

From ars technica

On October 1, 2015, US commerce will undergo a considerable change—a variety of big credit card companies, financial groups, and issuers will require that merchants upgrade their point-of-sale (POS) terminals to accept chip-based cards as well as (and eventually, instead of) magnetic stripe cards. You may have already received chip-based replacements for your magnetic stripe cards in the mail.

The plan to transition to the new payment standard — called EMV for EuroPay, MasterCard, and Visa, (the developers of the standard) — was agreed upon in 2012, but a recent Manta survey said that 28 percent of small and medium business owners still aren't aware of the new payment standard. That's particularly troubling, because in the event of magnetic stripe card fraud at a store's POS, the store will be liable for that faulty transaction if they don't have up-to-date hardware that can accept chip cards. 

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