Up until the introduction of the EMV chip cards on October 1, 2015, fraudulent transactions could be made from the black magnetic strip on the back of credit cards. Information stored on the magnetic strip never changes. Because of this, the credit card companies would be responsible for reimbursement of any fraudulent activity. Now, liability has been shifted the retailer or restaurant if they do not offer the ability to pay using an EVM card.
While the cost of installing the new EVM terminals and processing systems can be expensive, in the long run, it could be less costly than having to pay for any fraudulent transactions made using the older terminals that only allow the use of magnetic strip cards.
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