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MasterCard, Visa, American Express and Discover Network are mandating the EMV migration. Each party has agreed to the October 1, 2015, date for the fraud liability shift and is using the shift to encourage a quicker EMV-adoption pace.

In other words, failure to migrate to EMV processing by the October 1 deadline can leave your business liable for fraud-related costs. To better understand this shift, continue reading. To skip straight to the migration process, see our Step-by-Step Guide to EMV Migration.

What Happens If I Don’t Migrate?

If you don’t complete your migration to EMV-capable terminals before Oct. 1, 2015, then the party with the least-secure infrastructure is liable for any credit-card fraud committed at your business. In this case, “least-secure infrastructure” means least EMV-capable.

This liability shift applies to fraud originating from both counterfeit credit cards and those that are lost or stolen. (There is an exception for Visa with respect to lost and stolen cards, however, which we will discuss later.)

In today’s pre-EMV world, issuing banks assume any liability if fraud originates from a counterfeit, lost or stolen credit card. After the October deadline, that liability assumption shifts to the party with the least-secure means of accepting payment.