The continent of Australia, a market roughtly the size of the state of Texas, has much to say about the payments industry. It is where the first regulatory price controls originated, where the industry put cost accounting standards to reduced interchange by 65%. Perhaps this development can add more value.
Australia has more transparency in the area of fraud than the US market. Issuers do not disclose fraud volumes in the US, only estimates. In AU they report fraud to regulators, a much better practice.
According to a recent report from the Australian Payments Network, Australian cardholders lost $533.8 million in 2016 alone to credit card fraud, with ‘card not present’ (CNP) fraud by far the most common – accounting for $417.6 million in lost money.
This article points to a new potential card ehancement which adds a dynamic card verification value (CVV) to replace the one printed on your card. It is an interesting test but it surely makes that simple plastic more complex, with NFC, EMV and now dynamic CVV onboard what used to cost $.17 for a simple plastic.
Overview by Brian Riley, Director Credit Advisory Service at Mercator Advisory Group
Read the quoted story here