As most of you know, October 2015 was a significant date for the payments industry. That date is when the liability for the cost of credit card fraud was placed on merchants, rather than card issuers or banks. That means that merchants who weren’t yet EMV compliant officially became financially responsible for fraud associated with stolen or counterfeit stripe cards.
That deadline wasn’t enough to push all merchants to become EMV compliant. By October 2015, 42% of businesses had not taken any steps towards becoming compliant, according to a survey by Randstad Technologies.
Next month marks the two year period since the EMV deadline. Where does the industry stand today?
Over Half of U.S. Merchants Have Adopted EMV
As of spring 2017, 52% of U.S. merchants — over half — have adopted EMV, according to a Strawhecker Group study referenced by the U.S. Payments Forum.
The adoption rate is even higher among cardholders. 63% of all U.S. credit/debit cards are chip cards, and 9 out of 10 Americans use a chip card on a regular basis.
Counterfeit Credit Card Fraud is Down
We all knew that EMV was supposed to be more secure. Today, the proof behind that claim is in the numbers. Visa found that counterfeit fraud losses for merchants went down by 58% between December 2015 and December 2016.
Chip Card Transactions are Getting Faster
One of the biggest annoyances about using chip cards, for both customers and merchants, is that the transaction time takes longer than traditional swipe cards. The typical chip card takes 10-15 seconds to process.
The good news is that “quick chip technology” has been introduced to the market. Quick chip transactions only take 2.5 seconds. For more resources on how to use quick chip for EMV, visit Visa’s website: https://www.visa.com/chip/merchants/grow-your-business/payment-technologies/credit-card-chip/resources.jsp
Two years later, many merchants are still overwhelmed by the prospect of upgrading their system. Having a dedicated payment processing partner like Tandem makes the transition easier. Our professional insight can help you adopt EMV quickly and affordably. Give us a call at 864-672-1570.