Who is liable for card fraud now — the consumer or the retailer?

With the introduction of chip and PIN there is no change in liability for the cardholder. Consumers remain fully protected from the cost of card fraud and are covered under The Banking Code. From 1 January 2005 there was a shift in liability for some types of card fraud from banks to retailers, but this does not affect cardholders in any way.

If businesses have chip and PIN terminals in store, they are covered from the cost of card fraud whether people enter their PIN or their signature, just so long as staff follow the on-screen prompts and carry out the routine checks ensure cards have not already been reported lost or stolen.

Banks will continue to be liable for the cost of card fraud committed on old-style non-chip and PIN cards, so by accepting them no business is putting itself at risk in any way.