MC/Visa Technical Fallback Notice...

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Generic

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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.
 
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.
 
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..
Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.
 
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..
Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.
.
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.
 
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..
Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.
.
Generic said:
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.
 
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..
Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.
.
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.
.
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.
 
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..
Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.
.
Generic said:
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.
.
That is so WEIRD. It's like skipping security for the sake of helping fraud.
 
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..
Well.... their address on your reservation? But it's also the processor to validate this. It's supposed to be programmed.
.
Generic said:
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.
.
That is so WEIRD. It's like skipping security for the sake of helping fraud.
.
Generic said:
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.
 
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