Generic
Well-known member
- Joined
- Feb 24, 2011
- Messages
- 7,728
- Reaction score
- 281
From MasterCard:
Effective 12 October 2018, an Issuer must decline authorization of a Transaction conducted in the Canada, Europe, Latin America and the Caribbean, or Middle East/Africa Region when technical fallback from chip to magnetic stripe occurred.
In other words, if someone sticks in a card and the chip doesn't work, it won't allow a "swipe" of the card except in markets not mentioned (Asia, Australia, USA.) The assumption now is that if the chip doesn't work, it is a thief trying to get around PIN entry. In other words, fallback will work for some cards issued in parts of Asia, Australia and USA, but not for elsewhere.
This currently affects VISA cards only from Canada as well as of the 14 April 2018. In other words, if the chip doesn't work and the card is from Canada, you cannot use the magnetic stripe and your processor should have not only told you, but should automatically say "Swipe Not Allowed" if you try.
There is a complete guide on what to do with fallback see https://www.visa.com/chip/merchants/grow-your-business/payment-technologies/credit-card-chip/docs/mitigating-fraud-chip-fallback.pdf
There are also new instructions to all card issuers to reiterate that the card is not valid unless signed, with the only exception being an "easy pay" card which doesn't have a signature panel. And a requirement by at least Visa whereupon if a bank hands you a card, they are supposed to make you sign it on the spot in front of them.
Effective 12 October 2018, an Issuer must decline authorization of a Transaction conducted in the Canada, Europe, Latin America and the Caribbean, or Middle East/Africa Region when technical fallback from chip to magnetic stripe occurred.
In other words, if someone sticks in a card and the chip doesn't work, it won't allow a "swipe" of the card except in markets not mentioned (Asia, Australia, USA.) The assumption now is that if the chip doesn't work, it is a thief trying to get around PIN entry. In other words, fallback will work for some cards issued in parts of Asia, Australia and USA, but not for elsewhere.
This currently affects VISA cards only from Canada as well as of the 14 April 2018. In other words, if the chip doesn't work and the card is from Canada, you cannot use the magnetic stripe and your processor should have not only told you, but should automatically say "Swipe Not Allowed" if you try.
There is a complete guide on what to do with fallback see https://www.visa.com/chip/merchants/grow-your-business/payment-technologies/credit-card-chip/docs/mitigating-fraud-chip-fallback.pdf
There are also new instructions to all card issuers to reiterate that the card is not valid unless signed, with the only exception being an "easy pay" card which doesn't have a signature panel. And a requirement by at least Visa whereupon if a bank hands you a card, they are supposed to make you sign it on the spot in front of them.