Pub. 10 2015-2016 Issue 2

www.nebankers.org 14 Extraordinary Service for Extraordinary Members. be borne by that party. 18 In other words, an EMV-compliant bank that has implemented a PIN-preferred CVM may be able to shift a lost/stolen fraud loss to a merchant that is not EMV-compliant or that is EMV-compliant but without PIN capability. If the merchant is EMV-compliant and PIN- capable, liability remains with the issuer. This variation on the liability shift may be largely academic unless PIN-preferred CVM becomes more prevalent than is now expected. The Bottom Line The liability shift may benefit a bank by allowing it to push some existing exposure for counterfeit fraud losses (or lost/ stolen fraud losses if PIN CVM is used) to unprepared mer- chants. Conversely this may be a large incentive tomerchants to become EMV compliant. Since many large merchants will be prepared, the liability shift benefit to banksmay or may not justify the bank’s expense of EMV implementation. Oct. 15th and the liability shift, standing alone, may not be the make- or-break watershed they sometimes appear to be in the news. Losses fromcounterfeit cards will remain a risk and source of losses for issuers of non-chipmagnetic stripe cards. Reduc- ing those losses by reducing the incidence of counterfeiting For more information, contact Bryan Handlos at Kutak Rock LLP at (402) 346-6000 or bryan.handlos@kutakrock. com. Handlos is a member of Kutak Rock LLP’s banking practice group where he concentrates on bank regulatory matters.  Counselor’s Corner — continued from page 13 • Banking & Finance • Municipal Law • Bankruptcy • Employment Law • Business & Commercial Law • Sanitary & Improvement Districts 2120 South 72nd Street, Suite 1200, Omaha, NE 68124 (P) 402.391.6777 (F) 402.390.9221 www.crokerlaw.com Croker,Huck,Kasher,DeWitt, Anderson & Gonderinger,L.L.C. AT T O R N E Y S AT L AW Providing quality legal services to businesses and individuals in such areas as: • Real Estate • Estate Planning • Probate • Taxation • Litigation • Tax Foreclosure Reach your target audience a ordably. advertise get results DON BROWN Advertising Sales 813.423.1429 donfbrown@verizon.net is the real reason to spend money to become an EMV issuer. In other words, loss reduction should be considered less in terms of the liability shift and more as a goal to be achieved through the technical protection against counterfeiting pro- vided by chip cards. Those who worry about worst casesmight wonder what will happen to the remaining magnetic stripe issuers’ counterfeit losses as more and more issuers move to EMV. 19 A bank may not want to stand out from the crowd here. Criminals that can no longer counterfeit big bank cards will likely look tomake up their lost revenue somewhere else. Criminals may move on to card-not-present fraud, but some may look elsewhere. Some may find a gazelle. 