Regarding Chip Card Reader

[inolepehc]

1) After buying the Chip Card Reader, what does one have to do in order to get the $100 refund?  I understand about the 3K within 3 months but, do we have to fill out a form or something like that? or, is it something that will just happen and a credit in our accounts will show up after we meet the requirement?

2) When will PayPal replace the merchants' MasterCard Business Debit cards with ones with chip?

3) In the event of problems with the device, who do we call? if after troubleshooting over the phone doesn't do anything, what kind of warranty do these devices have?

4) what's the expected life cycle of this chip card reader?

5) if the chip card reader is out of stock, will the merchant be liable for fraudalent transactions?

TIA for your attention.

ino.

[DPCreations]

1.  According to my understanding, the fee refunding will be automtatic, I assume on a monthly basis.  This means the account will show credits either monthly or at the end of the 3 months for the total transaction fees up to $100.

4.  If you don't use a chip card reader (the reson for not using it is not relevant) for a chip-enabled card and the card is fraudulent the vendor is responsible.  It is important to remember that the chip card and reader protects against a fraudulent/counterfeit card and NOT agains fraudulent use of a valid card.  Cards can be physically and visually inspected to determine counterfeit cards:  holograms and card irregularities can be detected and compared against card standards.

As for fraudulent use, the vendor can check against card holder ID just like in the past.

[inolepehc]

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@DPCreations wrote:

1.  According to my understanding, the fee refunding will be automtatic, I assume on a monthly basis.  This means the account will show credits either monthly or at the end of the 3 months for the total transaction fees up to $100.

thanks.  i thought so too, but better make sure than sorry later (and out of $100 )

4.  If you don't use a chip card reader (the reson for not using it is not relevant) for a chip-enabled card and the card is fraudulent the vendor is responsible.  It is important to remember that the chip card and reader protects against a fraudulent/counterfeit card and NOT agains fraudulent use of a valid card.  Cards can be physically and visually inspected to determine counterfeit cards:  holograms and card irregularities can be detected and compared against card standards.

As for fraudulent use, the vendor can check against card holder ID just like in the past.

i think you wanted to answer question # 5.  thank you for that.  but that didn't answer my question.  scenario:  i ordered the chip card reader just like they want me to do, paypal don't have it in stock and no estimated time as for when will they have it back, in the meantime, a customer pays with a fraudulent card and i don't realize that fact.  will i be liable? i don't have the reader not because i refuse to buy it or upgrade, the order has been placed and i'm waiting on paypal to ship one out.  Will paypal acknowledge that?

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Thanks to your answer i have the picture clear now, after all.  the difference between fraudulent card and fraudulent use of a valid card was something i was questioning all the time.  now i don't even know if i should spend the money in this reader and just keep the old magstripe reader, at least for now.   can you point me to a website where i can find this particular detail explained?  thanks.

[DPCreations]

I just check my information on the rebate and my response wasn't correct.  In order to receive the $100 rebate there must be $1,000 charges within 3 months; there is no option on partial rebates.  Once the $3,000 level is reached, the rebate credit will appear in the following month.

Edited to correct the base $3,000 level

[inolepehc]

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@DPCreations wrote:

I just check my information on the rebate and my response wasn't correct.  In order to receive the $100 rebate there must be $1,000 charges within 3 months; there is no option on partial rebates.  Once the $1,000 level is reached, the rebate credit will appear in the following month.

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$3,000

"You are eligible for the rebate if you process at least $3000 within three (3) months of activation. You are required to process this amount through PayPal Here swipe, contactless and chip card transactions. The eligible processing volume will be tracked on the account that the device was activated on. Cancelled transactions or returns will not count towards the eligible processing volume."

https://www.paypal.com/webapps/mpp/emv/terms

that link also answer my question about their return policy.

[DPCreations]

The $1,000 instead of $3,000 was a mental/typo.  I corrected to comment.

I just talked to a PayPal rep who indicated they shipped new EMV readers but sold out by 2 October.  They don't have a date for more and are working with another suppler for more.

As for the fraudulent/conterfeit card protection until the card is received, he wasn't aware of any.

[DPCreations]

I got an e-mail from PayPal today that the new readers should be back in stock on 19 October.

[srooney1]

4.  If you don't use a chip card reader (the reson for not using it is not relevant) for a chip-enabled card and the card is fraudulent the vendor is responsible.  It is important to remember that the chip card and reader protects against a fraudulent/counterfeit card and NOT agains fraudulent use of a valid card.  Cards can be physically and visually inspected to determine counterfeit cards:  holograms and card irregularities can be detected and compared against card standards.

As for fraudulent use, the vendor can check against card holder ID just like in the past.

I did some research, and found this to not be accurate.  MasterCard defines the liability shift this way: The party, either the issuer or merchant, who does not support EMV, assumes liability for counterfeit card transactions - See more at: http://www.paymentsleader.com/will-retailers-be-ready-for-emv-by-oct-2015/#sthash.ALh3SZPt.dpuf 

So the counterfeit card transaction is the liability issue, and not the fraudulent card, as you stated DPCreations.

[inolepehc]

please read the following comment i left in that website you mentioned and tell me who is liable.  thanks.

"this is exactly the same question i have. i was told in another forum about a sale paid with a fraudulent card and a sale paid with a valid card but being used fraudulently. there's obviously a difference there.

as i see it, a fraudulent card is a counterfeit card, for example, a criminal who has the technology to reproduce the information on your magstripe card and makes a "copy" of it and makes it look real and use it here and there. in this particular case, yes, the party with the oldest card reader technology it's liable, i get that and seems fair to me.

the other one, a valid card (either with a chip or not) being used fraudulently, for example, a dishonest person finds a card on the floor inside the store and goes to pay for his purchase right away to find out if he has any luck and the card goes through, a lot of places don't even ask for and ID, they just ask you to sign the receipt, some not even that if the transaction is lower than $50. if the card doesn't go through, this person will act surprised and ask the cashier to try another one (in this case, his own), or even worse, a lot of grocery stores have this fast lane where there's no cashiers and the customer have to scan everything.... you get my point, right?? so what happens here?, who's liable in this scenario?"

Thanks

(http://www.paymentsleader.com/will-retailers-be-ready-for-emv-by-oct-2015/#comment-2301566610)

[DPCreations]

Merchant is liable because merchant failed to verify identity of purchaser.

Big businesses accept that risk to speed their check-out procedures.

If the card has already been reported as stolen, the transaction will be denied automatically.  It will be declined automatically also if there are some strange activities by the card in recent transactions.  Credit card processers use variou algorithms to look for suspicious card activity and stop further use until the card company can contact the card owner.