What is a 'Card Verification Method' (CVM) as it relates to chip cards used at Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
CHIP AND SIGNATURE AND CHIP AND PIN ARE KNOWN AS "CARD VERIFICATION METHODS," OR "CVMS." EACH ISSUED CREDIT CARD HAS A PREFERRED CVM.
IF THAT PREFERRED CVM IS NOT USED, THAT SPECIFIC TRANSACTION FALLS UNDER THE EMV LIABILITY SHIFT, MEANING IF THAT CONSUMER DISPUTES THE TRANSACTION THEN HOTEL MAY BE LIABLE FOR FRAUD OR CHARGEBACKS, EVEN THOUGH IT WAS AN EMV TRANSACTION.
FREEDOMPAY IS NOT LIABLE FOR ANY FRAUD OR CHARGEBACKS TO HOTEL IF A PIN KEY IS BE AVAILABLE FOR HOTEL'S IMPLEMENTATION.
- 2.1.4.
CVM DISABLEMENT DISCLAIMER.
HOTEL HEREBY ACKNOWLEDGES THAT IT HAS BEEN INFORMED AND FULLY UNDERSTANDS THAT ANY DISABLEMENT OF THE PREFERRED CVM
REQUIREMENTS FOR CHIP CARDS; OR OTHER SUPPRESSING OF PREFERRED CVM REQUIREMENTS, IS AT HOTEL'S SOLE RISK AND FREEDOMPAY SHALL HAVE NO LIABILITY TO HOTEL OR ANY THIRD PARTY FOR FRAUD CLAIMS OR CHARGEBACKS; A FRAUD CLAIM WILL RESULT IN A LOST CHARGEBACK TO HOTEL DESPITE THE IMPLEMENTATION OF EMV BY FREEDOMPAY IN HOTEL'S SYSTEM, AND THAT AS SUCH, HOTEL ASSUMES ALL RISK THAT DISABLING PREFERRED CVM REQUIREMENTS ENTAILS, INCLUDING LIABILITY FOR THE CHARGEBACKS.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a Card Verification Method (CVM) refers to the way a chip card transaction is authenticated. Specifically, the FDD mentions that "Chip and Signature" and "Chip and PIN" are known as Card Verification Methods, or CVMs. Each credit card issued has a preferred CVM.
The document outlines the importance of using the preferred CVM for each transaction. If the preferred CVM isn't used, the transaction falls under the EMV liability shift. This means that if a customer disputes the transaction, the Even Hotels location may be held liable for fraud or chargebacks, even if the transaction involved EMV (Europay, Mastercard, and Visa) chip card technology.
FreedomPay, a service provider mentioned in the FDD, is not liable for fraud or chargebacks if a PIN key is available for the hotel's implementation. Furthermore, if an Even Hotels location disables the preferred CVM requirements for chip cards, it assumes all risks, including liability for chargebacks, even with EMV implementation by FreedomPay. This highlights the importance of adhering to the preferred CVM to minimize potential financial liabilities for the franchisee.