As per this Wiki page:
"EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them. EMV cards are smart cards (also called chip cards or IC cards) that store their data on integrated circuits in addition to magnetic strips... Payment cards that comply with the EMV standard are often called Chip and PIN or Chip and Signature cards, depending on the authentication methods employed by the card issuer.
EMV stands for Europay, MasterCard, and Visa, the three companies that originally created the standard."
On 10/1/2015 the liability shift for EMV-ready credit and debit cards (cards with embedded chips) took place.
What does this mean for you, the Toast customer?
Before 10/1/2015, the card issuers (that is, banks and other institutions) assumed the liability for fraudulent card transactions. From 10/1/2015, this liability has been moved to the merchants themselves, making the merchants responsible for any EMV-related fraudulent activity, not the card issuers. This activity includes the Chargebacks and Draft Retrievals processes.
Whenever a cardholder disputes a charge on their credit card statement, a chargeback is generated; it is not generated automatically by the card issuer. Card issuers will then attach a reason code to the chargeback in question. Due to the liability shift, a greater number of chargebacks are now classified as EMV-related. They should be disputed like any other kind of chargeback.
While Toast POS is not yet EMV-compliant, we do sell EMV-ready devices for when Toast can accept chip cards. Additionally, if a location has an EMV-reader on site, Toast offers limited liability coverage, and will reimburse the disputed amount of the chargeback, up to a total of $5000 per restaurant, until software compliance is achieved (Note: conditions apply).
If you are interested in purchasing an EMV-ready reader for you location, please contact Toast Support: email@example.com.
Please see the links below for further information regarding EMV and the EMV Liability Shift: