Globally, the majority of other countries have already migrated to EMV Chip and Pin technology. This made the US an easy target for credit card fraud activity. The EMV liability shift is helping address credit card fraud security vulnerabilities related to the poor payment processing technology that are ubiquitous across the United States.
Just two years ago, nearly half the entire world’s payment processing card fraud was counted for in the US at a whopping $7.68 Billion of global fraud losses, according to the Nilson Report (payment week). You would expect the US to have the greatest amount of spending volume with such a high percentage of global fraud, but the US actually only made up 21% of total global spending volume.
Since the UK launched mass EMV technology adoption, they have seen a 70% drop in card-present fraud. EMV delivers powerful benefits to deter fraudsters and it’s been proven internationally.
EMV helps reduce counterfeit card-present card fraud by generating its own special data when each payment is made to authenticate the cardholder’s card. Once authenticated, the cardholder must provide a personal identification number or PIN to confirm that it’s their card being used. EMV enabled cards when used at EMV enabled point of sale systems will significantly reduce card fraud as the technology is much more difficult to counterfeit.
How do you use EMV?
When a point of sale terminal is enabled with EMV, chip cards are not swiped like your traditional credit or debit cards. Chip cards are inserted or dipped into the payment terminal at the beginning of the transaction where the customer then is prompted to enter their PIN to complete the transaction.
Watch the Discover card’s video below for a short video on how to make a transaction.
Seems relatively easy doesn’t it? Whether you’re ready to make a switch or need more information, give us a call about making the switch. It could help reduce the threat of credit card fraud for your business faster and easier than you would expect.
Why else use EMV?
Other than fraud prevention and business liability for not having implemented this new technology, EMV offers more benefits.
EMV enabled terminals typically are enabled for NFC and contactless transactions. NFC and contactless are used for mobile and tap-and-pay payments, which are more convenient for consumers and more secure than swiping and signing. Consumers will also be ready to use this technology as most new credit cards have the technology.
Not only is our credit cards technology up to date, mobile payments are on the rise and about 71% of US adults have smartphones.
Before you know it, these consumers will be making mobile payments with nearly every mobile phone provider launching some sort of proprietary mobile wallet with payment technology enabled through NFC.
This is a great time not only to be current with consumer trends but also to protect your business from fraud by investing in the latest most secure technology.