There is no escape. Adopted nationwide in the United States on the 1st of October 2015, Europay/ MasterCard/ Visa (EMV) cards is here to stay. It has started replacing the old magnetic stripe card as an approved enhanced and secured system of payment. Nonetheless, up to now, only one-third of retailers have adopted this computer chip technology. 2017 should witness a difference as businesses are urged to embrace this innovative technology at the earliest possible to protect themselves and consumers as well against frauds.
A transition period
2016 is considered as a transition period for the adoption of EMV cards. As any transitional period, it came with its highs and lows but consumers and retailers should understand that the hassles popping up are only temporary. Many EMV terminals had to wait for much for official certification, triggering frustration amongst consumers and merchants having to switch back and forth from chip cards and magnetic stripe cards. As these administrative obstacles are easing away, things are expected to become more functional after the festive period in 2017.
Online fraud is shooting up
As payment system shifted to the use of EMV technology, online fraud spiked. Experts say this trend is not predicted to change for a better scenario. The Global Fraud Attack Index established that online fraud swelled up by 26% immediately after the implementation of EMV cards. The latter make use of computer chips that generate unique one-time codes for each transaction, making it impossible to counterfeit or to steal data. Consequently, fraudsters shifted to weaker links like online transactions and card not present (CNP) payments. As such, safeguarding of one’s self on this line is a need for retailers. The ideal solution would be to adopt the EMV technology at the earliest possible to avoid risks.
Poor customer experience
It is expected that 2017 will mirror a rising feeling of friction between customers and retailers who are delaying in adopting EMV cards. Both online and in-store retailers need to devise and implement fraud prevention measures that will offer a frictionless shopping experience to customers.
Beware of mobile payments
As expected, fraudsters shifted their attention to weak links after the adoption of EMV cards. Mobile commerce is one of the weak links. To enhance customers’ shopping experience, many retailers are offering the latter to make quick payments through mobile. However, on a parallel note, fraudsters are increasingly becoming attracted to mobile fraud which is expected to spike in 2017.
Adapt or perish
EMV technology will become a focal point in payments as it is considered as the most secured system up to date. As such, retailers procrastinating to innovate and to adapt their existing system to the EMV system will be the ones at loss. They should also consider the positive long-term impact this secure system of payment will have on their businesses.
Related articles published in EMV and Smart Payment Cards:
- More and more hackers are coveting Point-of-Sale systems
- EMV conversion: Neither security nor convenience sacrificed
- Chip Cards: A semi-satisfactory first birthday
- EMV: Tips to win the uphill battle
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