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Who is liable for fraudulent EMV transactions?

Who is liable for fraudulent EMV transactions depends on the type of card the cardholder uses to pay and the type of terminal you use to accept payments. The following table describes who is liable for fraudulent transactions:

Type of card Type of terminal Party liable for fraudulent transactions
Magnetic stripe only
Magnetic stripe only Card issuer
Magnetic stripe only

EMV compliant

Card issuer
Magnetic stripe only Your business
EMV compliant Card issuer
Important: If your terminal is EMV compliant and you swipe the magnetic stripe of a working EMV card or manually enter the details of a working EMV card, you are liable if the transaction is fraudulent.

If there is a fault with the EMV card, am I liable for the transaction?

If an EMV card is faulty, your terminal prompts the cardholder to use the magnetic stripe reader to swipe their card, this is known as a fallback transaction. You are not liable for fallback transactions.
If your terminal prompts the cardholder to swipe their EMV card, we recommend that you check the following:

  • The cardholder correctly inserted the EMV card into the card slot
  • The EMV card is not damaged

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