August 24, 2016
Report: EMV Adoption Suffering from Lack of Education
Oct. 26, 2015
Card-not-present merchants in the midst of assessing the impact of EMV migration on fraud were anticipating the Oct. 1 liability shift set by the card networks with dread. But, increasingly, data are pointing to the fact that the migration will be a much longer process than anyone was predicting, perhaps delaying a significant CNP fraud surge. Today, terminal maker and payment solution provider Ingenico released a report that suggests issuers are making headway in getting cards into consumers’ hands, but banks and merchants are falling short on education.
According to the report, 60 percent of U.S. cardholders have received EMV cards but only 48 percent have used them properly (by dipping them into an EMV-equipped POS terminal). A third of consumers surveyed who tried to use them at the point of sale had to ask for help from the merchant and more than a quarter (27 percent) said the educational material they received with their cards was not helpful. Ingenico said the results are not surprising.
“Based on our experience supporting other countries through their EMV migration, we believe the U.S. is progressing comparably at this stage,” said Rod Hometh, senior vice president of Strategic Development, North America at Ingenico Group. “Even with all the education that exists in the market, there is still work to be done over the next 12 months.”
So, even as fraud in card-not-present channels rises, the in-store channel is still available to bad actors. Whenever that channel closes, whether it’s the year Hometh suggests or even longer, the expected wave of CNP fraud still has not crested.