How EMV Works
The U.S. market is the last major market that still uses the magnetic-stripe payment method. Due to the high amounts of fraud EMV technology has been implemented to try and mitigate the security issues magnetic-stripes can pose.
Currently, if an in-store transaction is conducted through stolen means, losses incurred from the transaction are held responsible by the financial institution who issued the card, or the payment processing service.
At the behest of the major U.S. credit card issuers MasterCard, Visa, Discover and American Express, a deadline of October 1st has been placed on merchants to update their transaction technology to accept EMV chip cards. Although the update is not mandatory, after October 1st the liability for fraudulent in-store transactions will shift to whichever party is the least EMV-compliant.
What You Need to Know
Q: Will my mag-stripe card stop working after October 1st?
A: No, it will still work.
Q: Will I still be able to return items after October 1st?
Q: How does the liability shift affect me as a member?
A: As a member you will not have to worry about anything.
Q: Will my card work where EMV is accepted?