As states issue new rules to establish who would pay in case of credit card information is stolen, more and more credit card issuers and retailers will switch to EMVs as a way of preventing credit card fraud. Instead of swiping our plastic-we’ll dip the cards at chip-enabled terminals.
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That means it’s tougher for scammers to abduct credit card digits from an EMV card than a standard credit card.
“EMV is a strong device, nevertheless it’s exclusively efficient if each shoppers and retailers are prepared to make use of it for transactions”.
Assess how your company handles customer credit card data – is it secure?
But as per the research, EMV would not solve the entire problem.
Credit card companies are asking consumers to get on board. And while this shift gives both parties a lot of incentive to adopt the technology, EMV compliance is not required. Also, processors are in need of more staff to process certifications fast enough to keep up with demand. “If only one side has upgraded to EMV for a specific transaction, then the upgrade was a waste”.
The chip technology focuses on in-store purchases and cutting down on fraud involving fake cards.
In the United Kingdom, for example, counterfeit fraud rates temporarily spiked and “card-not-present” fraud has continued to increase since EMV adoption in 2005. Because the USA has been late to adapt, it’s responsible for over 50% of fraud. “We are in the technology business and we wanted to be ahead of the game, ” The Wall Street Journal quoted iHospital chief executive Ross Newman.
“What it does is it creates a one-time code that allows you to use that card”. The brand new terminals are actually easy: Insert your card into the cost terminal chip-first. Leave it there and follow the terminal’s prompts. “Due to the gap in merchant deployment, education in chip cards will have to be ongoing, and merchants will need to match the efforts of issuers”. Though few merchants have transitioned to EMV terminals, customers are already perceiving a less efficient checkout experience at the point of sale. It’s likely that fraudsters will increasingly target merchants without EMV technology at this time.
October marks the liability shift date, when the four major credit card brands, Visa, MasterCard, Discover, and American Express, will begin shifting the financial liability for credit and debit card fraud to organizations that do not support EMV chip cards. Why you ask? Because we have been getting ready for the largest paradigm shift the industry has seen in our lifetimes. “There are now more solutions to identify and detect online fraud”, said Stephanie Ericksen, a vice president with Visa Inc. Secure sites will have “https” at the beginning of the payment page’s URL, rather than “http”.
Part of the issue is the expense of changing card readers, though The Wall Street Journal noted that card readers can be had for less than $100 a pop and many vendors are offering savings as the deadline draws near. And avoid sending credit card information via email or social media.
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There are chances that fraud may take place to transactions where the physical card is not needed like purchases through phones or online.
