Chip & PIN Liability on Credit/Debit Cards

INT1

Thought I would ask this question.

If you had an unrecognised transaction (Cash or Retail) on your bank/credit card statement and you contacted the company.

They inform you that the transaction was:

Card present Chip read
PIN Verified

Because of the above they are not prepared to treat the matter as fraud and the transaction would remain on your account.

What would you do about this?

This may open up a can of worms here but I'm just interested to know.

Niteflyer

aldo wrote: »

Thought I would ask this question.

If you had an unrecognised transaction (Cash or Retail) on your bank/credit card statement and you contacted the company.

They inform you that the transaction was:

Card present Chip read
PIN Verified

Because of the above they are not prepared to treat the matter as fraud and the transaction would remain on your account.

What would you do about this?

This may open up a can of worms here but I'm just interested to know.

This is a tricky subject!

Under the banks code of practice, customers are protected if they have taken care to keep their cards safe and their PIN a secret. They should only be responsible for losses if they acted “without reasonable care”, such as writing down their PIN or allowing someone else to use a card.

However the big banks are flouting their own code of parctice and refusing refunds over £50!

This has been an ongoing case! there is a case in the courts right now, I can't remember the names but someone used the card on chip and pin to pay for a holiday while the owner of the card was in prison! lol

LeeSouthEast

Personally I'd stick with it. It's the principle.

C&P was introduced primarily to shift the fraud blame from the banks onto the customer. It had little to do with their other reasons given (imho).

James

What I’d do now and why: (Presuming your card issuer hasn't informed YOU that they've reported this incident to the Police).

Report this to the Police and get a crime reference or incident number.

Why?

Your bank is blaming you - you are the victim. Victims of crime should inform the Police.

By reporting this to the Police it will help convince the Bank your really are a victim.

Allows early intervention by the police if ATMs or shops PIN Pads have been tampered with. It may also point to a data breach. But don't expect the police to investigate.

Send a letter soonest to your Card Issuer. Keep a copy, send the letter recorded and request a receipt.

In the letter give your card issuer the Crime Ref or Incident No.

State that no one else knows your PIN and you are careful with it all all times. (Presuming this is true). You may like to include a question to your card issuer - can they guarantee a 100% PIN security (They can't).

You should also state the whereabouts of your Card when these transactions were made.

The links below are to the recognised legal expert in this fields website:

You will find all the info you need on reporting Card Crime by clicking here.

You can find a splendid article on Banking: The PIN and the ATM by clicking here.

You can get help by clicking here. (Scroll down to - The Future & Can You Help?

I hope you find these links useful - Good luck.

Alex_LS

LeeSouthEast wrote: »

Personally I'd stick with it. It's the principle.

C&P was introduced primarily to shift the fraud blame from the banks onto the customer. It had little to do with their other reasons given (imho).

It was introduced after the banks were told by Visa & MasterCard that liability for any fraud would automatically fall upon whichever link (merchant, acquirer, issuer) had not upgraded. There are still mag stripe cards being issued (leaving the issuer liable) and some merchants still accepting the risk for any liability.

Alex_LS

aldo wrote: »

If you had an unrecognised transaction (Cash or Retail) on your bank/credit card statement and you contacted the company.

They inform you that the transaction was:

Card present Chip read
PIN Verified

Because of the above they are not prepared to treat the matter as fraud and the transaction would remain on your account.

What would you do about this?

Assuming the card never left my possession, I would ask the bank to prove it was my card that had been used. This would involve validating the Transaction Cryptogram - returned by the card at the time of authorisation - with the unique card key derived from their master key.

If they were able to do this, yet my card truly hadn't been involved, this would represent the first ever known instance of a true EMV compromise.

M_Thomson

Alex_LS wrote: »

It was introduced after the banks were told by Visa & MasterCard that liability for any fraud would automatically fall upon whichever link (merchant, acquirer, issuer) had not upgraded. There are still mag stripe cards being issued (leaving the issuer liable) and some merchants still accepting the risk for any liability.

The rules are as follows (for the 99th time)!
If you have a chip and pin card where the pin is used, and the transaction turns out to be fraudulent, the bank will pick up the tab. If a retailer accepts a Chip and Pin card, and bypasses the pin number and lets the customer sign the retailer is liable for the fraud. If the retailer accepts a magnetic stripe card, and the transaction turns out to be fraudulent the bank will pick up the tab. Merchants must accept Magnetic stripe cards as part of their merchant agreement. Lots of countries like America and Australia do not use Chips in their cards, so and any retailer that does not accept these cards is not following the rules and stupid for turning away business. There are lots of poorly trained staff in stores regarding the rules.

BenjaminMoore

I have a debit card with TD Bank in canada and my chipped debit card was used to cash fraudulent cheques. Will I be reimbursed or will I be held liable. I'm already in debt and can't afford to have something like this over my head. Someone please help

Alex_LS

M_Thomson wrote: »

The rules are as follows (for the 99th time)!
If you have a chip and pin card where the pin is used, and the transaction turns out to be fraudulent, the bank will pick up the tab. If a retailer accepts a Chip and Pin card, and bypasses the pin number and lets the customer sign the retailer is liable for the fraud. If the retailer accepts a magnetic stripe card, and the transaction turns out to be fraudulent the bank will pick up the tab. Merchants must accept Magnetic stripe cards as part of their merchant agreement. Lots of countries like America and Australia do not use Chips in their cards, so and any retailer that does not accept these cards is not following the rules and stupid for turning away business. There are lots of poorly trained staff in stores regarding the rules.

I don't think you quite understand what was said. The liability rests with the weakest link. If the merchant accepts a mag stripe transaction on a chip card, then they are liable for the fraud. If the card is mag stripe only, then the card issuer is liable.

James

You might find the following article from The Daily Mail interesting:

"But because of the way card fraud cases are handled, customers left out of pocket have no means of demanding justice and getting some money back."

"It won't reimburse them because all the transactions were made with the original card and Pin, which suggests the code was also stolen. In these cases, customers can be held liable."

Complete Article Click Here.

Tip: Reduce personal risk of loss to yourself by opting for Chip & Signature Credit Cards.

Dave101t

i almost called my card company about some transactions because i couldnt for the life of me remember the transaction, and the merchant details were unrecognisable too.
a quick check in my yahoo account for email order confirmations, on the date of the transaction showed quite clearly it was my order, just a very strange company name and merchant address. moral: make absolutely sure your correct!