EMV: The Results Are In!

emv chip credit card

EMV: The Results Are In!

EMV: The Unsung Hero of Credit Card Fraud Prevention

In October of 2015, the credit card industry watched as the EMV liability shift occurred, but it seems like the dust hasn’t settled fully yet. EMV has become an essential tool in helping to prevent credit card fraud, especially counterfeit cards, however not everyone has implemented it.

Visa compiled a list of data among businesses that have implemented the chip recognition and noticed that there was a downward trend in fraud. Looking at those merchants who had the highest rates of fraud in the final quarter of 2014, their fraud rates dropped by over 18% by the end of 2015.

And of course, there is the other side. Merchants who did not choose to implement EMV experienced almost 12% higher fraud rates. That’s a scary statistic. The lack of the chip reader itself does not cause the increase in fraud, but rather customers who wish to exploit weaknesses in the swipe system before it’s eliminated.

But why aren’t all merchants using EMV chip readers?

In most cases, business owners just don’t know about EMV and what the pros are regarding it’s implementation, but there are a few more significant reasons why not all merchants have installed the proper hardware:

It’s Expensive

Not all merchant processors are providing free terminal upgrades that include an EMV reader. Unfortunately the cost of a new terminal can range from $300 – $700 depending on it’s features and connectivity type. If you are a smaller merchant, this can be quite an expense especially if you have more than one register.

Software Is Lacking

For many companies that have EMV-ready terminals, they are finding that they cannot activate their machines just yet. Even though the hardware is being provided, the software is lagging behind. Programming for the chip reader is more extensive than that of the mag stripe and requires more testing before it can be put into production.

More Time At Checkout

The layout of a retail store is designed in a way that moves the customers along in an orderly and efficient fashion, and ultimately toward the checkout. Unfortunately with EMV terminals, sometimes the checkout process isn’t so orderly or efficient. In the time it takes for the terminal to read a chip, a customer could swipe and either sign for the purchase or type in their pin number to complete a transaction. The wait time, along with a higher likelihood that the customer will forget their card in the chip reader, adds one more slash in the con column.

Peace of Mind

Even with the cost of expense and the additional time at checkout, having the liability removed from your business may wind up proving to be a worthy investment. An 18% decrease in fraud is something that you should consider. Instead of paying for chargebacks and unsuccessful transaction costs, you could wind up saving money in the long run.

If you want to learn more about EMV or how to integrate it into your current business, contact us. We’d be happy to help!