It’s Official: The ATM Liability Shift Is Here

This October marked the one-year anniversary of the EMV liability shift, an essential but challenging process that rocked the payments industry. On the one hand, it reduced retail fraud significantly. However, some consumers felt that it hampered the checkout experience, at least initially.

Consumers and merchants have had a year to adjust to the change. This October 21st was the next milestone in the battle against payment fraud, the liability shift for ATM machines.   ATM owners are now required to be EMV-enabled to avoid chargeback liability.

For merchants undergoing an ATM upgrade, there are three main differences that the transition entails:

The Terminals Will Be Different

Customers adjusted to dipping their card instead of swiping at most retailers, and now they will have to do the same at ATMs as well. Although EMV-compliant ATMs will still be able to read mag-stripe cards, they are will redirect EMV cards to the chip reader instead.

 A New Procedure for Getting Cash

There are two types of ATM card readers, and the card insertion process differs for each.  

  • Tractor feed machines pull the cards into the ATM for processing. Customers using this kind of ATM won’t notice have to change the way they insert their cards.
  • Dip insert machines have typically read cards via a quick insert in and out. On an EMV-compliant machine, customers will need to insert their cards and refrain from pulling them out until the ATM prompts them to.

On-Screen Prompt Changes

Consumers will need to adjust to slightly different menu choices due to the EMV migration. It is important to compare the differences between the old and new prompts and inform employees so they are able to assist customers and answer questions as needed.

The new regulations may seem challenging, but they are a worthwhile investment.  A study conducted by FICO found that the number of compromised ATMs in the US grew 546% between 2014 and 2015.  Fraud levels have been rising, but EMV enabled ATMs to have an added level of protection.

However, many merchants are not on board yet. Only 35 percent of all ATMs in the US are currently EMV enabled. Since the EMV shift, they are now responsible for covering any fraudulent losses, which grow every year.

Fidelity is proud to report that over 90 percent of our ATMs are EMV ready. We have made the process simple for our merchants to ensure a smooth and seamless transition. Using our proprietary solutions that were developed in-house by our technology experts, we are able to integrate EMV in even the most complex merchant setups.

Fidelity understands that being proactive is the only way to combat fraud, and we’re here to help our merchants do just that to achieve payments efficiency.

Contact us today to find out more about EMV solutions for your business.