Saturday April 23, 2016

Merchants See Dip In Fraud Thanks To Chip Cards

Chip cards seem to be making a positive difference. Counterfeit transactions have supposedly decreased as much as 18% from merchants who have updated their systems.

Among the 25 merchants who were suffering the most instances of counterfeit fraud at the end of 2014, five that began processing credit and debit cards equipped with the new EMV technology saw those infractions fall 18.3% as of the final quarter of 2015, says Stephanie Ericksen, vice president of risk products at Visa. Meanwhile, five of those merchants who were not yet equipped to handle chip-enabled cards saw an increase in fraudulent transactions of 11.4%. "We’re seeing EMV is having a positive impact on counterfeit fraud,’’ Ericksen says. "Merchants who implement chip, their counterfeit fraud is going down, while those still finalizing plans, their counterfeit fraud is going up.’’

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