After an Oct. 1, 2015, deadline created by major U.S. credit card issuers MasterCard, Visa, Discover and American Express, the liability for card-present fraud will shift to whichever party is the least EMV-compliant in a fraudulent transaction.

Consider the example of a financial institution that issues a chip card used at a merchant that has not changed its system to accept EMV card technology. This allows a counterfeit card to be successfully used. The cost of fraud will be on the merchant.

Any merchants not EMV-ready by October 2015 could face much higher costs in the event of fraudulent transactions.

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