9 years
Im not sure if this is mainly in the US. I know in Europe we have had chip and pin for a good few years now.
New rules for credit card fraud liability
Front Desk Operations
Hostels may want to have this story on the radar:
http://www.npr.org/sections/thetwo-way/2015/10/01/445006454/3-things-to-...
It sounds like if merchants don't have the new chip technology, they are liable for any fraud committed through the machines rather than the credit card companies.
I don't know much about this story, but I read it online and thought that hostels might want to know.
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9 years
It looked like it might apply mainly to the US, but I was reading it on my phone and unsure. :)
9 years
Yep. Only the US. You can thank Target for helping us Americans finally catch up. We're getting there. It's good to know my CC details will be more secure as I'm buying bullets at a vending machine.
9 years
I got you.
The short answer: Your hostel/associated businesses will be liable for fraudulent charges.
The longer answer: This will be a rolled out process. It starts with credit cards and then will move to check cards in the next year. As Americans, we dragged our feet on adapting to what most of the Western world has been using to cause fraud to plummet, since implementation. In the beginning, it will be chip and signature (more secure). However, everyone will be on chip and pin. From what I have read and understand from my financial institution, merchants were slow to adopt because it was more expensive for the terminals and associated startup costs. However, while working on my plan, the up front costs really is small considering the reduced risks on charge-backs and fraud liability.
9 years
Oddly enough, despite the effectiveness of the chips I have seen a move AWAY from credit card security recently.
With the Visa PayWave feature, any purchases below $25 will not require a pin or signature. Instead the card will simply be waved over the electronic reader and it will automatically be charged.
The card isn’t even handed over to the vendor to verify the name or signature. So any pickpocket or purse snatcher can charge your card with total freedom as long as they keep their purchases under that threshold.
The combination of the chip, pin, and signature seemed like pretty solid security to me. I'm not sure why Visa made this move. Vendors are likely to be quite reluctant to accept liability for fraudulent charges made with this system.
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