Merchants can still process credit cards the old fashioned way, but they are liable for fraudulent transactions not the credit card issuer.
Can merchants still accept all credit cards after October 1st:Yes, all EMV chip cards still have a magnetic stripe and can be swiped or keyed manually. In the short run, if a merchant is not EMV-ready and a customer presents an EMV chip credit card, the transaction can still be completed.
What are merchants liable for: The liability shift only applies to card-present transactions when a new EMV chip card is being used. If that specific transaction is found to be fraudulent, the merchant not equipped for EMV could be liable for the value of the transaction.
Is EMV a LAW?: EMV is not a law. It is not a government mandate. However, after the flurry of recent high profile data breaches, the credit card industry has agreed to the liability shift effective October 1, 2015.
How does EMV affect E-Commerce: It really doesn’t at this time. EMV only applies to in-person card-present transactions utilizing a chip-enabled card. Transactions will process as usual for ecommerce merchants.
When should merchants upgrade systems for EMV: When they want the liability for in-person card-present transactions utilizing a chip-enabled card to be with the card issuer and not them/the merchant.