EMV Implementation Reaches Small Merchants, Fraud Losses on Debit Cards Down 28%: Reports

Two new studies show the U.S. move to the EMV standard is making progress, both in the number of businesses that are compliant and in reduced fraud numbers. As installations continue, merchants that accept card-not-present transactions can expect fraud to continue to rise as it becomes more difficult in card-present environments.

Research conducted by the National Retail Federation found that even small retailers are accepting chip-card transactions in greater numbers. More than 70 percent of small businesses have installed chip-card readers as of July with 81 percent expected to have done so by the end of the year, the retailer lobbying group said. For mid-size and large businesses, NRF said 86 percent were equipped to accept chip by the end of 2017 and 99 percent plan to be chip-enabled at the end of this year.

As more businesses install chip readers, counterfeit fraud at the POS is dropping. A new study from PULSE, the Discover-owned debit/ATM network appears to corroborate other numbers that show a decrease in fraud perpetrated at physical store locations. In its 2017 Debit Issuer Study, PULSE found that fraud loss rates on debit cards dropped 28 percent in 2016 compared to 2015.

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