May 24, 2018
While the extent to which the migration to EMV-compliant payment acceptance in the U.S. has contributed to increased fraud in card-not-present channels has never been definitively measured, it is widely accepted that it has had a considerable impact. Theoretically, fraudsters engaged in counterfeit fraud would not sit idle as their ability to steal from merchants dwindled. They would move on to the next-easiest channel—online. If that’s the case, the most recent EMV stats from Visa are cause for concern.
Since merchants began migrating to EMV-compliant POS systems in 2015, counterfeit fraud has fallen 76 percent among merchants that have made the switch, according to Visa. And, while the San Francisco-based card network said 2.9 million U.S. merchant locations are now able to accept chip cards, more than one third still are not equipped to do so.
Fraud aimed at e- and m-commerce merchants continues to grow simply because the volume of online transactions still is growing quickly. But, as more stores implement EMV and counterfeit fraud becomes even harder, the migration in the U.S. to chip cards will continue to take a toll on CNP merchants in the form of fraud.