The use of bank cards has always brought about fraud worries and convenience issues. Europay/ MasterCard/ Visa (EMV) chip cards are revolutionizing the payment industry in the United States (US) and it is expected to undergo further changes in the coming years. With the advent of these innovative cards, both retailers and consumers should understand that they may finally sit back. This system has been designed to offer maximum security and convenience-two main features that are the driving forces for sales and customer satisfaction.
Resistance to change
In almost every scenario, change entails frustration and resistance. The case of EMV cards is not an exception. It has been welcomed with massive resistance from both merchants and clients in the US. Since its introduction, end 2015 in the United States, complaints kept on flooding. Customers are frustrated with long processing time while retailers were stuck in administrative congestions to obtain certifications and wary of chargebacks. However, both businesses and clients should understand that these hassles are temporary, in this phase of conversion. On the long term, EMV cards are bound to offer unrivalled security levels and convenience to all.
Measures to ease the transition
Meanwhile, global payments technology companies such as Visa, American Express and MasterCard are more than ever on the alert. This transition period is keeping them on their toes and they are reacting accordingly to ease away related inconveniences. These companies are reviewing policies such as chargeback, and have already reduced the number of tests needed for certification processes. This decision aims at making the terminals functional as quickly as possible.
Fraud is plummeting
Even if EMV cards have been adopted since one year only in the US, its success is already tantalizing. This is translated in the substantial decline in fraud. A similar trend was already noted when EMV cards were adopted in Europe some years ago; fraud plummeted by 24% from 2007 to 2011 according to the European Central Bank. Another survey carried out by Aite Group and ACI Worldwide established that 46% of credit card holders in the US have been victims of fraud at least once during the last five years. EMV chip cards definitely raise the security standards and equally allow US citizens to use their cards safely when travelling. Both consumers and retailers should be satisfied with the extra layer of safety offered with the EMV system. As these cards generate a unique code at every transaction, they cannot be cloned and if ever information is stolen at a point of sale, it will be totally useless.
Contactless payments equally secured
Mobile payment systems like Android Pay and Apple Pay have embraced EMV standards combined with tokenization. As such, payments are still fast but are more secured. The client’s data is stored off-site and is substituted with a token at the moment of transaction. Fraudsters will not gain access to the data if ever the token is stolen.
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- Chip Cards: A semi-satisfactory first birthday
- EMV: Tips to win the uphill battle
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