April 21, 2016
Six months after liability for fraudulent in-store purchases shifted from issuers to merchants that do not have EMV capability at their POS, implementation continues slowly. The process has been beset by problems including long waits for certification that have prompted a lawsuit. But, perhaps merchants’ biggest concern is how much longer it takes to complete a transaction using a chip card vs. swiping a magstripe. This week, Visa launched “Quick Chip,” a software fix that speeds up checkout time by enabling shoppers to remove the card before the transaction has been completed. Visa is offering the Quick Chip specification free-of-charge to payment processors, acquiring banks and other payment networks to offer to merchants.
“Visa is advancing a streamlined approach to chip transactions to make them faster and more efficient, while still providing a safe and secure experience,” said Mark Nelsen, senior vice president of risk products and business intelligence at Visa. “Quick Chip for EMV helps make the checkout experience comparable to the ease and speed of magnetic stripe transactions.”
While the problems are well-publicized, EMV does appear to be having a positive effect. Visa told USA Today it saw an 18.3 percent reduction in counterfeit fraud in Q4 2015 among its most susceptible merchants that completed EMV upgrades. The liability shift also has taken its toll, however. By January, processors were reporting a significant increase in chargebacks and that their merchants were clamoring for EMV.