TAMPA, Fla.—The Mastercard ATM liability shift arrives Oct. 21, and one expert says it’s time credit unions that have not upgraded to chip-enabled machines begin doing so.
Lou Grilli, director of payments strategy at CSCU, advised credit unions to make the switch not simply because the Mastercard deadline is here, but to prepare for Visa’s ATM liability shift in a year, which involves more debit cards and can lead to even greater fraud exposure. He also recommended that when changing out ATMs it’s worthwhile to consider upgrading machines to include more convenience features, such as envelope-free deposits.
Grilli reminded that while the Mastercard’s liability shift is not a mandate, with it comes greater potential for fraud losses for those that don’t meet the deadline. ATM acquirers will bear the liability for fraud committed at ATMs that have not been EMV-upgraded—that is, ATMs not capable of reading and processing chip cards—when a Mastercard-branded card is used.
For the full story on this issue in CUToday.info, go to The boost.