All credit and debit cards are now being made with “a computer that is 1/4 the size of a postage stamp” this technology we know as a chip card. Chip cards are extremely beneficial to the security of cardholder information. When chip cards are inserted, they create a unique transaction ID (also known as Tokenization) every time the card is used; when using the traditional magnetic strip card, you have the same transaction ID every time making you vulnerable to hackers.
Liability Shifts (Post Oct. 2015) for Merchants Using Chip Readers
For companies processing Credit Cards transactions, the liability shifted after Oct. 1st 2015. The graphic below outlines who is responsible for fraudulent transactions based upon how the fraud occurs and the level of protection and use of Chip technology at the company accepting the Credit Card for processing.
