What can trigger a liability shift to the merchant in regards to EMV transactions?

A liability shift in the context of EMV (Europay, MasterCard, and Visa) transactions occurs when the responsibility for fraud losses moves from one party in a transaction to another, typically in a scenario involving chip-enabled cards. In this case, failing to accept a chip card presented by the consumer is a significant trigger for the liability shift to the merchant.

When a customer presents a chip card, the expectation is that the merchant will have EMV-enabled terminals to read the chip. If the merchant fails to accept this type of payment method, they may be held liable for any fraudulent transactions made with that card. This is because the purpose of EMV technology is to enhance security and reduce fraud; merchants who do not adopt this technology may inadvertently encourage fraudulent activities.

In contrast, other options do not directly relate to the conditions that would transfer liability under EMV rules. Using a different payment method does not trigger the shift since it's not about the chip functionality. Presenting a non-chip card is not a liability shift scenario since non-chip cards do not have the protection that chip-enabled transactions offer, and thus the responsibility may lie elsewhere. Incorrectly entering the PIN code does not trigger a liability shift because it relates to user error rather than the