1. Just 25 percent of US debit cards were issued as chip cards by the end of 2015, compared to more than 50 percent of credit cards. That means that card issuers and banks remain liable for fraudulent transactions when consumers use the old magnetic-stripe cards.
The lag is due to unique requirements for the debit card system in the US compared to networks in other parts of the world. System specifications were released just a year before the EMV transition, leaving little time to begin reissuing debit cards. But industry insiders expect the number of EMV debit cards in the US to top 70 percent by the end of 2016.
2. As of December 2015, there are now more Visa-branded chip cards in the hands of American cardholders than in any other country in the world. That's more than 212 million Visa chip cards, an increase of 644 percent in just the last year.
It's clear that banks and card issuers are hitting their stride in replacing magnetic-stripe cards with EMV cards. That means that merchants need to have upgraded point-of-sale hardware in place in order to avoid the liability for any fraudulent charges.
3. An equal number of small-business owners (42 percent) do AND do not believe that chip-card technology will improve fraud protection at the point of sale. Obviously there's a disconnect here, and you have the opportunity to help your clients understand what EMV can do for card security.
Chip technology for card-present transactions prevents fraudsters from copying card data and then creating new counterfeit cards. But for ecommerce stores, business owners will also need to employ encryption and multi-factor authentication in order to keep cardholder data secure.
4. Industry verticals with the highest rate of EMV card usage are sporting goods (73 percent); parking lots, meters, and garages (72 percent); and transportation services like taxis, rail, and other public transportation (65 percent). Chip cards are used the least in fast-food establishments (26 percent).
While these statistics highlight some early trends for different industries, they may also be indicative of how quickly the different card brands are upgrading to EMV. More than eight out of ten (83 percent) of American Express–branded cards contain chips, while MasterCard has replaced just 42 percent and Discover just 40 percent.
5. As 2016 rolls by, the US now boasts at least 766,000 chip-enabled merchant locations, a year-over-year gain of 872 percent. While many of these businesses include large, top-tier merchants, more and more smaller businesses are becoming EMV-ready.
If you have clients that have not yet upgraded to chip-card technology at the point of sale, now is a great time to start the process. There's plenty of time for installation and testing prior to the holiday shopping season, a potential sticking point for many merchants in 2015.
6. Hawaii (63 percent), Florida (59 percent), and New York (59 percent ) lead the way in the percentage of EMV cards presented during transactions with US merchants. It just makes sense that these states with large numbers of card-carrying tourists passing through will see a higher incidence of chip cards. The states at the bottom of the spectrum are Mississippi (11 percent), South Dakota (20 percent), and Maine (20% ).
Now that you know the latest on how the EMV transition is progressing, you're ready to help your customers get up to speed, too.
How is the move to EMV improving payment security for your clients?
If you need more assistance or have a specific question use the contact information below for Jeremiah Shea, Data Capture/POS payments expert!
ABOUT THE AUTHOR
Jeremiah Shea leads Ingram Micro’s DC/POS Payments Program and provides support for vendors like Verifone, Ingenico, Magtek, ID Tech, and Equinox. He has been part of the DC/POS division at Ingram Micro now for five years, working with all facets of the business for strategic execution. Jeremiah has also become the subject matter expert on EMV readiness and overall payments strategy. With a technical background and a sound understanding of the business, he is a great resource to tap for any and all questions relating to EMV, but more broadly anything DC/POS related as well.
Phone: 1-800-456-8000 ext 64810