More than half of small businesses that accept point-of-sale card payments are not aware of a major change in chip-card liability coming Oct. 1, according to Wells Fargo's quarterly small-business survey.
New EMV chip technology rolling out in the United States is designed to protect in-store payments by generating unique, one-time codes for transactions. It's supposed to cut down on hacks and credit-card fraud. But card issuers and merchants who do not pay to upgrade their point-of-sale systems to accept the new chip cards will assume liability for any fraudulent transaction after Oct. 1.
In the big hackings of years past, think Target and Michael's, the banks have been pretty much on the hook for their customers' losses. But, with the smart-cards on offer, the banks are putting the liability on businesses.