Am I Liable for Fraudulent Credit Card Transactions?

Created by Alsabana Sahubarali, Modified on Mon, 4 Nov, 2024 at 9:10 AM by Alsabana Sahubarali

The short answer is no, the merchant is not liable if a client provides a fraudulent credit card number. EMV (Europay, Mastercard and Visa) recently implemented a new standard of requiring merchants to have terminals that read chips in credit cards as opposed to magnetic strips for Card Present Transactions (POS). Credit cards in Cloud are stored off-site and thus considered Card Not Present (CNP) transactions, so this procedure does not affect our franchisees. More information can be found here: 

http://www.emv-connection.com/emv-faq/#q7

and here:

http://www.rcmp-grc.gc.ca/scams-fraudes/cc-fraud-fraude-eng.htm 

To summarize changes in credit card security and policy is something that we're constantly monitoring, but as of now the liability for any fraud falls on the bank and processor, not you as the merchant.



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