Originally Posted by
uds0
Sorry if I missed something here - are you suggesting that if a merchant has a chip reader and the customer chooses to use the mag strip, then the merchant is still liable if the reader doesn't force the customer to use the chip dip?
Yep, the only exception is if the transaction does a technical fallback (I.e. chip couldn't be read after three attempts so tells them to swipe the card or the card networks application isn't on the terminal, for example, the merchant could accept Amex but not support Amex's chip application), then the terminal will send a message along with the transaction telling them it was a fallback transaction (these should really be declined by the issuer but in reality they don't).