EMV compliance and the switch to chip-enabled cards and readers can have a big impact on reducing a merchant's interactions with fraud. Stolen data, particularly credit card and other sensitive data is still a large problem for companies. As long as enterprises store these materials in their databases, hackers will continue to try to infiltrate business networks to get their hands on customer information.
EMV is leading customers to develop new habits like using mobile wallets with a biometric for a faster checkout experience. Discover 5 more ways EMV is changing the landscape:
1. EMV readiness is growing.
Consumers should be able to use their chip and pin credit and debit cards at 99% of merchants by 2019 and 100% of merchants in 2020.
2. The US is a chip market leader.
Before EMV adoption, in 2015, the US was 25 years behind the rest of the world when it came to chip-based cards. In October 2015, the US transitioned to chip-based cards after several high-profile credit card hacks at Target, Home Depot, Michaels, and other big-box retailers. Now, the US is the largest chip market in the world.
3. EMV cards combat counterfeit.
According to Visa, EMV cards have been effective in reducing counterfeit fraud, which is the most common type of fraud committed in the US. Merchants that have transitioned to EMV cards have seen fraud levels drop by 76% from December 2015 through December 2017.
After the EMV rollout, fraudsters are getting more sophisticated.
Fraudsters are adapting to the widespread use of EMV by moving to card-not-present (CNP) fraud. Since skimming and creating fake mag-stripe cards are no longer as profitable as they once were, fraud rings have turned to chargeback fraud (making fraudulent purchases using stolen identities and card numbers), as well as targeting call centers with social engineering to steal account data. Call center fraud rates have doubled since 2015.
What’s next? Contactless.
EMV is already being outpaced by new and improved secure payments technology. In Australia, 93% of payments are contactless. In Canada, 51% of payments are contactless. Along with additional security, contactless payment also increases the speed of the transaction.