New Credit Cards, Fraud/Liability, and Responsibility

To combat the problem of credit card fraud, credit card issuers in the US are now adopting the use of EMV or chip cards; the same type of credit cards currently used in almost every other country worldwide.  Instead of having the common magnetic strip which contains unchanging data, the EMV cards contain a computer chip embedded into each card.  These chips create a unique transaction code with every use which makes fraudulent activity much less likely.  The new EMV cards will consequently require new devices to read them.

Other than the need for new technology to read the EMV card, the important change to note is that in the past, the banks issuing the credit cards have been responsible for any fraudulent use of the cards.  With the new cards, stating October 1, if fraud can be traced back to an outdated reader, the liability will fall on the church, not the bank.

If you have not obtained an updated reader or are unsure if you are compliant, we suggest you contact your credit card processor and follow-up with them on how to obtain updated readers.   Costs vary for the new readers but the cost of not obtaining one may end up being more costly.

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