Who is liable for ATM card fraud? An EMV update for credit unions

When it comes to fighting U.S. card fraud, EMV is living up to all its promises. In fact, creditcards.com reports that, as of May 2016, chip-enabled merchants nationwide had reported a 47 percent reduction in counterfeit fraud annually, according to statistics released by Visa.

As of April 2016, EMV-compliant merchants within MasterCard’s network reported a 54 percent annual decrease in counterfeit card fraud – while merchants without EMV security saw counterfeit fraud rise by 77 percent year over year.

With cardholders and merchants embracing EMV chip technology in growing numbers, many consumers may wonder why their credit union’s ATMs are still limited to magstripe transactions.

That paradigm is about to change.

“Based on the ATMIA 2016 ATM Channel EMV Readiness survey, nearly 90 percent of U.S. ATM owners have performed hardware and software analysis or made purchases needed to upgrade or replace their ATMs in order to support EMV,” said Terry Pierce, Senior Product Manager for CO-OP Financial Services.

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