Re:Credit Card Signatures Are About to Become Extinct in the...
by mannykannot on Tuesday April 10, 2018 @08:52AM
(#16800949)
There are well-documented cases where liability had been shifted to the customer, and which was only reversed through there being evidence that is not normally available in these cases:
"In one disputed transaction case we assisted in, the customer had his card stolen while on holiday, and then used in an EMV transaction. The issuer refused to refund this customer on the basis that their records showed the PIN was used. Luckily, the customer managed to obtain the merchant receipts, and these contained the TVR. This indicated that the PIN was not used, and the merchant opted to fall back to signature. We decoded the TVR and informed the customer, who was then able to get a refund.
Other customers are less fortunate: it is unusual for the TVR to be included on the receipt, and often the merchant receipt has been destroyed by the time the dispute is being considered."
The law may always have been that the customer is not liable unless they enabled the fraud, but I hope the rules of evidence and/or practices of dispute resolution have changed so that the infallibility of the system is no longer tacitly assumed.
"In one disputed transaction case we assisted in, the customer had his card stolen while on holiday, and then used in an EMV transaction. The issuer refused to refund this customer on the basis that their records showed the PIN was used. Luckily, the customer managed to obtain the merchant receipts, and these contained the TVR. This indicated that the PIN was not used, and the merchant opted to fall back to signature. We decoded the TVR and informed the customer, who was then able to get a refund. Other customers are less fortunate: it is unusual for the TVR to be included on the receipt, and often the merchant receipt has been destroyed by the time the dispute is being considered."
https://www.cl.cam.ac.uk/research/security/banking/nopin/oak...
The law may always have been that the customer is not liable unless they enabled the fraud, but I hope the rules of evidence and/or practices of dispute resolution have changed so that the infallibility of the system is no longer tacitly assumed.