Previous Politech message: http://www.politechbot.com/2005/07/08/whos-liable-for/ -------- Original Message -------- Subject: Liability Shift in Canada Date: Fri, 8 Jul 2005 14:22:17 -0400 From: Catherine Johnston <catherine@private> Reply-To: <catherine@private> To: <declan@private> A number of your readers and my members have emailed me today in regards to your item on liability shift for credit cards in Canada. I'd like to clarify two things in relationship to the Canadian emergence of EMV payment aplications. The first is that the liability shift that is mentioned for 2010 applies only to Visa Canada. Unlike the US, Canadian financial institutions choose to issue either Visa or MasterCard, but cannot issue both. The liability shift was a decision made by the members of Visa Canada. MasterCard Canada has announced that they are ready to move to EMV whenever their members wish to proceed, but no rollout or liability shift dates have been discussed. Our Interac real time debit system is also moving to EMV. In terms of acquirers, several years ago most of the Canadian financial institutions issued credit cards as well as acquiring transactions from merchants. Although some still acquire, most FIs sold that part of their business to external acquirers. The cardholder is not considered to be an acquirer and the liability for each cardholder is limited by their agreement with the issuing FI. Declan, it took me a very long time to sort out acquiring from issuing, so I hope this helps. The payment system in Canada is similar in many ways to the US, but issues such as association duality are radically different. Best regards. *Catherine Johnston* Catherine Johnston President & CEO, ACT Canada Chairman, International Smart Card Associations Network (ISCAN) ACT Canada *Advanced Card Technology Association of Canada* 85 Mullen Drive Ajax, Ontario, L1T 2B3 (1) 905 426-6360 extension 23 www.actcda.com *ACT Canada members, both domestic and international, benefit from access to information, networking and market analysis. We provide a neutral forum for stakeholders to learn, share information and pursue their goals. Founded in 1989, we are internationally recognized as a reliable source of information on advanced cards and the Canadian marketplace.* . -------- Original Message -------- Subject: Re: [Politech] Who's liable for "smart card" security breaches? You? [econ] Date: Fri, 08 Jul 2005 09:26:34 -0700 From: Richard Powell <admin@private> Reply-To: admin@private Organization: Valet Pay LLC To: Declan McCullagh <declan@private> References: <42CE021D.8010506@private> Declan, Important note. The Acquirer is NOT Joe Consumer (card holder). Please see the following definition. http://www.npc.net/merchant/bankcard101.htm#The%20Acquirer 'The acquirer is a member of MasterCard and Visa, and is contracted with merchants to accept merchant sales drafts, provide authorization terminals, instructions, and support, and handle the processing of credit card transactions.' Richard Powell Valet Pay LLC -------- Original Message -------- Subject: RE: [Politech] Who's liable for "smart card" security breaches? You?[econ] Date: Fri, 8 Jul 2005 10:09:06 -0400 From: Richard M. Smith <rms@private> To: <tony@private> CC: <declan@private> >>> Who are [credit card] acquirers? Google knows: http://www.intelecard.com/features/03features.asp?A_ID=455 credit card acquirers (companies that focus on selling credit card processing direct to merchants) >>> credit card and debit card fraud rates are quite high Actually fraud rates are falling. The primary purpose of new credit card technology is to speed up transactions so that people will use cash less and credit cards more. RFID credit cards for example will eliminate signatures when making a credit card purchase. Richard -------- Original Message -------- Subject: Re: [Politech] Who's liable for "smart card" security breaches? You? [econ] Date: 8 Jul 2005 06:30:27 -0400 From: John M Levine <johnl@private> To: Declan McCullagh <declan@private> CC: politech@private References: <42CE021D.8010506@private> > "With a market of approximately 55 million cards, it is anticipated that > issuers will start > deploying smart cards in 2006 with critical mass expected by 2010, after > which the > liability in case of fraud will shift from issuers to acquirers." > > Who are acquirers? Joe Consumer? If so why would the liability > shift? What if the systems have been broken by then? The acquirer is the agent that handles the charge for the merchant. I think it's quite appropriate for them to be resposnsible for checking for stolen or bogus cards. It's most definitely not the cardholder. R's, John _______________________________________________ Politech mailing list Archived at http://www.politechbot.com/ Moderated by Declan McCullagh (http://www.mccullagh.org/)
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