The new change will allow the company to cut test time from a couple of weeks to a couple of hours, following a similar move made by Visa last week. Not only will they be changing their policy, but they have also stated that drastic improvements will be made to its EMV-related chargeback policy to ease the flow of counterfeit card chargebacks now for the first time hitting merchants that are not yet capable of accepting chip cards.
Addressing fraud chargebacks, Chiro Aikat, MasterCard senior business leader for US product delivery, says that they are updating their rules in order to minimize the cost to merchants who have not yet transitioned to EMV. The update refers to some adjustments MasterCard has been making to its own network intelligence to more accurately control the chargebacks from going to merchants when the transactions dont meet the expected network criteria for merchant liability.
MasterCard has stated that the majority of US credit cards carrying their brand (70% to be accurate) are now chip cards, a significant growth of 58% since October, 1s fraud-liability change. Also, the number of US merchant locations accepting chip cards stands at 1.4 million, a rise of 240% since October, 1.
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