EMV cards and fraud liability shift deadline - Hawaii News Now - KGMB and KHNL

EMV cards and fraud liability shift deadline

HONOLULU (HawaiiNewsNow) -

Today, the in-store counterfeit fraud liability shifts to the party — either the issuing financial institution or merchant — that has not adopted the EMV chip technology.

But how does EMV technology work?

The chip in the EMV card creates a unique code every time it’s used, making it significantly more difficult to duplicate and counterfeit on a mass scale. EMV is designed to mitigate losses related to credit card fraud and counterfeit cards. You insert the chip side of your card into the terminal slot, and wait for the transaction to process. You then verify your identity by entering your PIN or signing your name. It’s normal for EMV transactions to take slightly longer than the verification of a regular magnetic strip card

Hawaii State Federal Credit Union was the first in Hawaii to issue these EMV credit cards. They are constantly seeking new and innovative technologies to give their members greater control and security. That is why they became the first financial institution in Hawaii to launch a locally issued EMV card to their members, their Visa Signature cash rewards credit card, in April 2014.

EMV chip cards offer far greater security than regular magnetic strip cards. They are the standard in Europe and are widely used in 80 countries around the world. 

You will still be able to use the magnetic strip on your card, same as you always have. The only difference is that if you became a victim of credit fraud after October 1 and the merchant does not have EMV technology, the merchant would become liable rather than your credit card company.

The user wouldn’t be held liable for fraudulent activity whether or not the chip or magnetic strip is used.

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