EMV is definitely not the game-changer to stopping fraud.
EMV simply shifts fraud liability from the Issuers to the merchants, as fraud WILL migrate to the online channels.
Eliminating fraud in the Card-Present (CP) space is going to be a challenge as long as the magstripe coexists on the plastic with the chip; and unfortunately magstripes will coexist,
as merchants will slowly and reluctantly incur further costs to update their terminals.
This will be a slow and costly process.
Also, let's not overlook other international markets that have yet to convert over to EMV.
With the US being a highly desirable location for international tourists, merchants will not want to refuse a sale on non-Chip cards.
Even after 10 years, UK is still accepting magstripe payments. So the battle will continue, especially as the art of card skimming becomes even more sophisticated and possibly later on chip!!
For now, EMV "could" become a very effective deterrent to copying card data at the POS, along with shrinking CP Fraud,
but there are cases in EMV markets where the both card data and PIN have been breached,
along with consumer negligence over securely looking after their PIN and card(s).
The bigger question is what will EMV do to fraud? It's highly debatable...
As seen in the Canadian and UK markets, EMV will certainly shrink CP fraud, but it will also force fraudster to migrate to other easily exploitable channels - namely the online shopping channel, where fraud is rampantly growing!!!
EMV simply shifts fraud liability from the Issuers to the merchants, as fraud WILL migrate to the online channels.
Eliminating fraud in the Card-Present (CP) space is going to be a challenge as long as the magstripe coexists on the plastic with the chip; and unfortunately magstripes will coexist,
as merchants will slowly and reluctantly incur further costs to update their terminals.
This will be a slow and costly process.
Also, let's not overlook other international markets that have yet to convert over to EMV.
With the US being a highly desirable location for international tourists, merchants will not want to refuse a sale on non-Chip cards.
Even after 10 years, UK is still accepting magstripe payments. So the battle will continue, especially as the art of card skimming becomes even more sophisticated and possibly later on chip!!
For now, EMV "could" become a very effective deterrent to copying card data at the POS, along with shrinking CP Fraud,
but there are cases in EMV markets where the both card data and PIN have been breached,
along with consumer negligence over securely looking after their PIN and card(s).
The bigger question is what will EMV do to fraud? It's highly debatable...
As seen in the Canadian and UK markets, EMV will certainly shrink CP fraud, but it will also force fraudster to migrate to other easily exploitable channels - namely the online shopping channel, where fraud is rampantly growing!!!
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