People may complain about chip cards being a little slower at the register, but there is no denying EMV technology has benefited both consumers and merchants by greatly reducing counterfeit fraud.
Financial services giant Visa released an infographic recently that showed counterfeit fraud is down 70% among chip-activated merchants in the United States, likely because chip cards have all but eliminated the past problems associated with magnetic stripe cards.
Without the chip, magnetic stripe cards were highly susceptible to fraud.
That’s because the stripe contained static data that was surprisingly easy for hackers to steal and clone, but EMV chip card technology—established by Europay, Mastercard and Visa—provided a solution.
The tiny chips have improved point of sale (POS) security by making credit and debit cards nearly impossible to clone, thanks to sophisticated encryption technology embedded within each one.
Now more than half of all U.S. merchants accept chip cards.
Visa’s infographic also revealed that EMV adoption has skyrocketed among retailers, and today more than 2.7 million merchant locations across the U.S. are accepting chip cards.
That’s a 578% increase since EMV technology was first introduced.
It makes sense to see more chip-enabled merchants since businesses who haven’t upgraded their equipment could face financial penalties if fraud occurs.
As of October 2015, liability in EMV-related fraud cases now falls on the party with the least secure system.
Slow chip card transactions may soon be a thing of the past.
Visa has been at the forefront of EMV technology from the beginning, recognizing the value of chip cards in a payments industry plagued by cyber security threats.
The company will soon roll out its newest EMV technology: the Quick Chip.
Not only will the Quick Chip accelerate transaction speed and shorten the wait time at checkout, but it will also offer enhanced security features and increased protection for consumers.
With more consumers using chip cards, merchants need to be ready.
The Visa infographic also revealed just how many people are now using their chipped debit and credit cards.
Ninety-six percent of the company’s payment volume in December 2017 was on EMV cards (about $78 billion) which is a huge leap from just a few years ago when the technology first became available.
Making sure you have completed the migration to EMV-enabled equipment is essential not just to stay competitive, but also to safeguard your business from fraud and protect your bottom line.
Trouble keeping up with new technology? MyWatchmen has your back.
When payment processing technology seems to change by the hour, it can be tough to keep up with the latest innovations.
At MyWatchmen, we make it a point to stay on top of what’s new in payment processing—from the cost of upgrading your equipment to how to install and make the best use of your new tech—so we can make sure you’re running the most efficient and profitable system.
When you start making plans to update your technology, call MyWatchmen at 1-888-256-2845 or schedule a time to meet with us.
We can save you time and money, and all you have to do is focus on your business.