While there's no official mandate to upgrade point-of-sale systems to EMV, those choosing to opt out are setting themselves up for security challenges down the road. As chip cards and readers become more commonplace, those without EMV capabilities will likely become more inviting targets for fraud.
That's why it's important to get the word out about EMV compliance. You can use these facts and figures as ammunition when talking with customers.
Fact: According to Visa, seven out of 10 Americans have at least one chip card in their wallet, and approximately 93 percent of consumers are aware of the move to EMV.
In the six months following the October 2015 EMV transition, the number of US consumers without a chip card has decreased dramatically. At the end of September 2015, just 14 percent of cardholders had EMV cards, while recent surveys show that that number has quadrupled.
As card issuers continue to replace consumer credit and debit cards with chip cards, and more Americans gain awareness of EMV, consumers will expect to see this payment technology where they shop. Merchants without EMV-card readers will face higher scrutiny and can more easily lose consumer trust.
Fact: In the six years following Canada's shift to EMV, credit-card fraud fell 68 percent while debit-card fraud plummeted 88 percent.
For countries like Canada, data collected post–EMV adoption show that card-present fraud declines significantly for both credit and debit transactions. The research also indicates that once chip cards and chip-card readers reach a saturation point in the country, more card fraud happens outside that country, namely in markets not ready for EMV.
Because the US is the last of the world's large economies to adopt chip technology, it's likely American card issuers and merchants will reap the benefits of these more secure cards, both at home and abroad. US cardholders will also have more payment options during business trips and vacations.
While chip cards won't prevent some of the issues with fraudulent card-not-present transactions, merchants are turning to other strategies like encryption, tokenization, and multifactor authentication. By combining the "holy trinity" of e-payments—EMV, encryption, and tokenization—e-commerce merchants canminimize fraudulent activity.
Fact: Forty-four percent of small businesses have been affected by card fraud, averaging almost $9,000 per incident.
For a variety of reasons, small to medium-sized businesses and very small businesses make up the majority of merchants yet to transition to EMV. Many don't believe installing chip-card readers will benefit their businesses. Others feel the costs of upgrading outweigh any outlays for fraudulent transactions.
But as the above statistic shows, a single incidence of card fraud can be very costly. With liability shifted to the least compliant party in the transaction, card issuers and banks are more likely to shift costs to merchants.
As you talk with your customers about the importance of EMV compliance, focus on the business benefits. When clients see how improved card security and expanded payment options can bring in customers and drive more sales, there's nothing more to say.
What strategies are you using in order to help customers achieve EMV compliance?