Chip Liability Shifts
EMV chip technology can provide a more secure alternative to non-chip
technology for reducing counterfeit-fraud transactions, and if PIN is used as the
cardholder verification method (CVM), lost, stolen, and never-received-issue
(NRI) fraudulent transactions.
Therefore, certain countries and MasterCard regions have decided to migrate
to the EMV chip platform, and some have also decided to require or are
considering requiring PIN as the preferred CVM.
Many of these same countries and regions have instituted a chip liability shift
for domestic and intraregional MasterCard transactions to protect customers that
have made the early investment in EMV chip.