MC/Visa Technical Fallback Notice...

7 replies [Last post]
Generic's picture
Offline
Joined:
02/24/2011

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.

__________________

Permission to quote in whole or in part, other than usage on this forum, is entirely forbidden.

 

PhineasSwann's picture
Offline
Joined:
09/25/2012

So aside from what the guest tells us, how are those of us in the U.S. supposed to know the card is from Canada? 

Some banks are obvious, but others aren't. (TD Bank?)

Fraud is such a small issue with us that I don't plan to worry about this.

__________________

Darren
Innkeeper & Owner

 

Generic's picture
Offline
Joined:
02/24/2011

Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.

Morticia's picture
Offline
Joined:
05/22/2008

Generic wrote:

Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.

Lots of our Canadian guests have us credit cards to avoid the additional exchange fees.

Thanks for the heads up on the cards. We don't have pin entries even on Canadian cards.

__________________

Never judge a person's story by the chapter you walked in on.

 

Generic's picture
Offline
Joined:
02/24/2011

That is so WEIRD. It's like skipping security for the sake of helping fraud.

Morticia's picture
Offline
Joined:
05/22/2008

Generic wrote:

That is so WEIRD. It's like skipping security for the sake of helping fraud.

I keep waiting for the screen to pop up asking for a PIN, but it never does. I don't know why. The card is accepted without it. Not a clue.

PhineasSwann's picture
Offline
Joined:
09/25/2012

I'm just saying if they're going to defraud me with a bad credit card, they're not likely to give me their real address.

Generic's picture
Offline
Joined:
02/24/2011

Considering that there are 5 main banks in the country, it's not that hard to recognize them. CIBC, RBC, BMO, Scotia, TD. There are some other issuers, but those are the largest 5.... after that there is MBNA, CapitalOne, Desjardin, National, Laurentian, Brim.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.