04/02/2019

EMV Has Greatly Reduced Fraud

The number of chip cards has grown 221 percent since the 2015 EMV launch

According to a recent analysis by Visa, merchants saw a dramatic decrease in card-present fraud due to the adoption of EMV chip cards. U.S. merchants who have upgraded to chip technology saw a decrease of 80 percent in counterfeit fraud dollars in September 2018 when compared to September of 2015. Also, total counterfeit fraud dollars went down by 48 percent and the number of chip cards has grown 221 percent since the launch in 2015.

What Makes Chip Cards So Secure?
In both their contact and contactless formats, EMV cards and mobile EMV payments are fortified with two-way authentication of the card and POS, cryptographic verification, and the dynamic code that protects each transaction.

Each EMV card is armed with a smart chip or a small computer that has its own data storage, processing power and application software. An EMV card offers better security because it contains unique keys specific to each card, therefore protecting your transactions. This code is validated by your bank for each transaction and the code can’t be re-used. A counterfeit card is useless in this scenario because it could not generate the correct unique code and the transaction would fail.

Please select this link to read the complete article from OSAE Member Infintech.