April 24, 2018
In 2017, only 41 percent of in-store card transactions in the U.S. were completed using chip cards on EMV-compliant POS terminals. Most experts agree that one of the primary drivers of card-not-present fraud (along with the simple fact that e-commerce is becoming more popular with consumers) has been the introduction of EMV chips in payment cards. When it becomes harder to counterfeit cards and monetize stolen payment card information in stores, fraud migrates to card-not-present channels. With the continued EMV implementation in the U.S., that process gained momentum last year. The worldwide circulation of chip payment cards increased by one billion between 2016 and 2017 to 7.1 billion.
In many regions around the world, most card-present payment card transactions are EMV-compliant, notably western Europe (98 percent), Canada and Latin America (91 percent) and Africa and the Middle East (90 percent). The U.S. has made progress (less than 20 percent of in-store transactions were made with chip cards in 2016), but the process is far from over.
The continued changeover in the U.S. will require not only the issuance of more chip cards, but the installation of EMV-compliant POS systems at more merchants. Whether you believe EMV is the main culprit or not, the migration of payment card fraud from card-present to card-not-present figures to continue.