In Case You Missed It, Credit Card EMV Conversion Was a Success

by Brian Riley 0

EMV Conversion

The US market was 25 years behind the times as it relates to chip-based cards, primarily because of the strength of predictive scoring and the cost of the emv conversion.  The real network challenge was interoperability.  U.S. cards were not working in Europe; and vice versa.  But here we are, two years after the mandate and there are definitely industry benefits.

  • Because of its security features, EMV-enabled cards significantly reduced fraud-related incidents.

  • According to Visa, merchants accepting ‘chip cards’ reported a drop in counterfeit fraud losses by 58 percent in December 2016 when compared to December of the previous year.

  • Similarly, Mastercard fraud data also saw a 54 percent decline in counterfeit fraud from April 2015 to April 2016.

For input/output forms, the network conversion mandates were particular effective on the issuing side.

  • During the recent Secure Technology Alliance Payments Summit, keynote speaker Stephanie Ericksen of Visa revealed that 96 percent of the company’s payment volume at point-of-sale (POS) use EMV cards.

  • In addition, 59 percent of POS terminals in the US accept chip cards—an impressive growth since the liability shift.

The muscle memory of doing a “swipe” is pretty much gone these days as the “insert mode” has taken over.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

Read the quoted story here