Do EMV chips affect chargebacks?

EMV chips are those little golden squares on your credit and debit cards. They are little computer chips that prevent your card from being counterfeited. EMV chips have made card-present fraud much more difficult. This has pushed fraud into the online space, where the EMV chip is taken out of the equation. As a result, most chargebacks come from card-not-present transactions.

The implementation of EMV chips is also known as a “liability shift” because any merchant processing card-present transactions with EMV terminals are no longer liable for fraud. The liability for fraud shifts to the issuer in card-present transactions. Read more here.