So to encourage merchants using Dip and Tap instead of swipe, brick and mortar cc processor companies said they no longer would cover fraud from cloned swipes. Sounds fine right? Except their own payment terminals after 2 or 3 dips/taps not working just go “fine just use swipe” -_-
That's part of the EMV standards; the terminal parameters set by the bank or the merchant are combined with the card parameters set by the issuer to determine threshold for risk.
A merchant or bank in a 3rd world country may decide on thresholds that effectively never do a fallback transaction.
In my experience CC Processors rarely covered fraud anyway (at least in the US). Which is one of the reason fraud is so wide spread
Rare is the bank, and/or CC processor on the hook, it is either the consumer or merchant that is left holding the bag, if the Bank and/or CC processor were always on the hook for fraud, fraud would be almost impossible
Same is true for so called "ID Theft" if the bank and/or other lenders where on the hook for that type of fraud "ID Theft" would also be impossible, but since consumers have to clean up their own victimization the banks and lenders just play lip service to fixing it
> cc processor companies said they no longer would cover fraud from cloned swipes. Sounds fine right?
yes, and it makes sense that it would encourage adoption of the new dip-tap machines. That they can also swipe does not decrease the incented appeal of the new safer system
