Odds are you’ll soon have a new MasterCard. The company has taken the next step in moving to cards with EMV chips instead of magnetic stripes by announcing that starting October 2016 ATM fraud liability will shift away from the card network. This is part of the roadmap toward complete EMV (Europay, MasterCard and Visa; responsible for the chip cards) adoption that MasterCard introduced in January. By pushing risk toward merchants, issuers and acquirers, the company hopes to force them to switch to the newer technology.
The chip cards are more secure and less prone to fraud. This causes fraudsters to gravitate toward the least secure products out there, namely, those that possess a stripe. MasterCard would like to make all involved with payment transactions aware of this upcoming plan.
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