The EMV 101 series provides go-to-resources for those who are interested in learning more about EMV payment technology and EMV migration in the U.S. This is the fourth entry to this series that outlines the timeline for the U.S. EMV migration. As we progress through the series, we will go more in-depth on the EMV technologies and applications that are important for a successful program roll out.
Across the globe, there continues to be a push for more secure payment technology. EMV has proven to be an effective technology to reduce fraud for card-present transactions, forcing fraud to migrate to areas that have not adopted a chip-based payment system. After years of push back due to the significant deployment cost, the U.S. issuers are working diligently to roll out EMV as the October 2015 liability shift approaches. As migration begins to take shape in the US, it’s important to take a look at how other large economies made the shift, and compare how different migration patterns and policies have affected fraud rates around the world.
These individual use cases offer several lessons in the global migration process to EMV adoption. One consistent trend has been a decrease in card-present fraud, followed by an increase in CNP fraud and fraud export to non-chip based countries. As U.S. issuers are pushing to meet the liability shift deadline, it is important to look beyond the technology. What we have learned from many of the global migrations is that it is not easy to change consumer behavior. Education becomes a key element to ensuring consumer adoption. Otherwise, consumers will quickly default to the “swipe” of the mag stripe to complete their transaction.
Issuers and merchants alike need to work together to ensure both the consumer and the cashier both know about the technology, how to use it, and if possible, why it is important. Soon we will all have EMV enabled chips on our payment cards. But, if we are going to see these used in a way that has any impact on fraud, we all need to do our part to educate those around us.
To learn more about EMV, read our EMV 101 e-book today!