Kenyan banks now liable for magnetic strip card fraud
The Kenya Bankers Association (KBA) has said it will not extend the deadline for the migration of payment cards from magnetic strip to the Europay MasterCard Visa (EMV) platform.The Kenya Bankers Association (KBA)
said it will not extend the deadline for the migration of payment cards from magnetic strip to the Europay MasterCard Visa (EMV) platform.
Banks will now be individually liable to compensate customers for fraud where they have not issued them with EMV compliant debit and credit cards, as the deadline for migration lapsed last Saturday (31 May).
Some banks are yet to fully issue the Europay-MasterCard-Visa cards, which use the chip and pin technology, the KBA said.
Chief Executive Officer, Habil Olaka, told newspaper The Star, banks that have not rolled out the EMV cards to customers as a result of internal logistics can set liability shift dates with their customers, in that way
they can continue using the old cards as the banks make arrangements to supply the cards.
In case of fraud on such customer accounts, the bank will be liable to compensate them, but this will shift when the agreed time frame lapses.
"The consumer should not be penalised for any operational issues that may arise
with the card issuing system," he told Capital FM a few weeks ago.
Until now, the system relied on magnetic strip technology which
could be easily exploited, and has been blamed for the
prevalent fraud issues
in Kenya's financial sector.