MasterCard extends zero-liability policy to PIN and ATM transactions

by. Nicole Reyes

In response to major data breaches at merchants such as Target, Michael’s and other retailers so far this year, MasterCard has announced it is extending its zero-liability policy for U.S. cardholders. The coverage now includes all PIN-based debit and ATM transactions.

“The changes that we’re making in cardholder protection, combined with our efforts to move the U.S. payments industry to EMV chip technology, will help deliver safer shopping experiences to consumers,” Chris McWilton, president of North American markets for MasterCard, said in a press release.

Some issuers have been quick to point out, however, that this extension of coverage is not exactly new. It’s simply a formalization of protections that credit unions and community banks already offer.

“MasterCard wanted to change our rules and offer broader protections to our cardholders,” MasterCard spokeswoman Beth Kitchener told BankInfoSecurity. “We spoke with our issuers and they agreed with the change. We worked together to make it happen.”

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