Fraud Liability Shift For Anyone Who Accepts Credit Cards

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Fraud Liability Shift For Anyone Who Accepts Credit Cards

Postby Buzzard » Tue Aug 18, 2015 1:58 pm

EuroPay, Mastercard, and Visa (EMV) have changed their merchant terms; beginning in October, liability for fraudulent transactions made with a magnetic stripe reader-- like the Square and PayPal readers most of us have-- instead of the new microchip/touchless/Apple Pay card readers is shifting from the banks and credit companies that issued the cards onto the merchants who accept the cards. That means that if you process a credit card transaction with the small (free) card reader you already have instead of the big (and expensive) new chip readers, if that card was stolen or had a fake account number on the stripe, you are now the one liable for the fraud. Since the new rules take effect on October 1st, but the new readers won't be available for small merchants until probably the end of the year :lol: , Square at least says it will eat the cost of any fraud until then if you preorder a reader now.

I can't for the life of me find any hard info on how much the new PayPal Here readers will cost, but most prognostication seems to be in the range of $100 - $150; Square's page on the subject says the new reader is free "for qualified sellers" (i.e., probably none of us, because we're not big enough) and will cost $49 up front for everyone else, which will then be refunded in the form of processing fee credits... but only for the first three months. Since Square charges 2.75% per transaction, that means you would have to clear at least $1781.82 worth of credit card transactions in three months for the new reader to actually be "free", and those three months would be in Spring, which ain't exactly con-heavy.
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Re: Fraud Liability Shift For Anyone Who Accepts Credit Card

Postby Aisha » Tue Aug 18, 2015 8:01 pm

Square's $49 reader is also the Apple Pay wireless reader.
They have the simple chip reader available for $29:
The small/simple reader is currently available, and you can have one before the new law goes through.
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Re: Fraud Liability Shift For Anyone Who Accepts Credit Card

Postby meauho » Wed Jan 20, 2016 8:44 am

All of the new readers that I've used or researched use NFC payments -Google Wallet, Softcard, Samsung Pay, or Apple Pay (since apple finally got around to it)

Paypal's is $150, but you can use the money on your Paypal debit immediately, so that may be worth it to some people. Transaction costs, it is less expensive by 0.05%

Intuit (Quickbooks) is the same price, unless you are on the monthly plan. Then it is less expensive if you charge at least $1295 per month or $15,540 per year

EMS: If you've ever owned a brick and mortar with a credit card terminal - you've probably heard of them (or even used them). Not sure about their new chip/pin readers, but they do charge a lot less than the others unless it's an Amex. Then it's 1% more unless you have a merchant account with Amex - which it will be based on whatever you work out with them. They also have readers with built in printers for immediate receipts.
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