As of October 1, 2015, merchants and businesses that accept payments via credit cards must upgrade their card processing technology or they will bear the liability for counterfeit, stolen or otherwise compromised credit card transactions.
The liability shift is part of the technological migration from credit card ‘swiping’ to microchip reading credit card processing. Issuers plan to release microchip embedded cards that are processed through insertion into a reader slot with either a pin or signature used for authorization.
To “encourage” this migration by merchants and businesses, as of the October date, liability for compromised card transactions will fall on the merchants if they have non-compliant processing capability.
In order to avoid this, all clients and colleagues are encouraged to upgrade their credit card processing technology as soon as possible.
For more information on this or other legal issues facing business and how to navigate or litigate through them please contact Judith Bachman, Esq. at firstname.lastname@example.org or 845-639-3210.