Fraud Liability Shift What is the liability shift?
Chip and PIN is designed to reduce fraud, and we are working with the payment card industry and you to help the UK achieve lower fraud rates. From July 1, 2005, any merchant who has not upgraded their terminal to be Chip and PIN compliant will be liable for any fraudulent transactions on American Express branded Chip and PIN enabled cards which could have been avoided by upgrading the terminal. This doesnt affect transactions where the terminal prompts you for the customers signature the liability remains with the card issuer for these types of transaction, as long as you follow the correct authorisation and signature checking procedures.
