Counterfeiting is the most common form of credit card fraud in U.S. stores, accounting for around two thirds of all reported cases. According to recent studies, the EMV or ‘Chip Card’ may be the most effective way to combat credit card fraud.
It was made available in 2015 at the beginning of October. In the meantime, users complained of slow processing at the counter. A full year of trial and data reveals a reported 54% reduction in counterfeit card fraud at retailers that use the technology. The CEO of the Electronic Transactions Association calls that a very significant finding.
Jason Oxman says, those numbers should outweigh complaints that the new chip card’s processing time is annoyingly slow. Oxman says the 40-year-old technology used in cards with magnetic strips, is much easier for fraudsters to take advantage of. The reason for slow processing times, he says, is because the chip card must draw power from the chip reader in order to function. Future software upgrades are expected to speed up the process to only a few seconds.
KMZU’s Elizabeth Orosco spoke with Oxman about the Chip Card, and the future of payment security.
For more information visit the ETA website, electran.org.