Believe it or not, microchip cards are not a new idea. Europe and Brazil are already more secure because their microchip cards generate a unique code for each transactions than the cards that just have a magnetic stripe.
Therefore, it would be no surprise to hear that today’s statistics on the EMV Chip Credit Card Payment system reflect the effectiveness of the system increasing security thus far.
In fact, VISA has reported that the top five merchants whom have already transitioned EMV Chip Credit Card systems have seen a decrease of fraud levels by 18.3 percent.
So, how is it that counterfeit fraud is increasing if the new EMV system is statistically showing a decrease in thievery? Well, it is simple. The more businesses update their EMV payment system, the more the business that haven’t transitioned are targeted by thieves.
In fact, stores that have not updated to the EMV Chip Credit Card Payment system have seen an increase of fraudulent activity by 11.4 percent, according to VISA.
On top of which, Merchants who have not transitioned to the new EMV system will not only be likely to experience fraud, but will also be held liable for fraudulent transactions instead of the bank. All the more reason merchants should update their point of sale systems!
Customers are already wary of credit card identity theft. As the EMV chip cards roll out to be a way of life and its value understood, customers will potentially be more likely to turn away from merchants that do not use the new technology.
If you are business looking to catch up with top merchants, protect your customers as well as your business, and want to avoid being held liable for counterfeit fraud, visit www.gilbarco.com/emv and/or watch this video to learn more about the risks of not upgrading for EMV compliance: