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Chip readers have liability shift. We did an event, and the fraudsters all had "sorry the chip doesn't work, can you swipe it or type it in?" cards. We had zero
by minutemad 4y ago
Chip readers have liability shift. We did an event, and the fraudsters all had "sorry the chip doesn't work, can you swipe it or type it in?" cards. We had zero chargebacks.
- sgerenser 4y agoThis only protects you from the most egregious form of fraud, where the actual card is cloned/stolen. Using a chip card doesn’t prevent the customer from filing a chargeback for a “failure to deliver” or defective product claim.
- twarnp 4y agoYes, but fake cards were such a problem it moved the entire card industry to chips. And also, if the friendly fraudster claims fraud or that it wasn't them, the shift stands. I'd also argue that friendly fraud is just as if not more egregious than fraud fraud.