Non-EMV merchants see 77 percent rise in fraud cost, study says
MasterCard has published data updating its progress on chip implementation in the U.S. and its impact on issuers, merchants and consumers.
According to a company press release, 88 percent of MasterCard U.S. consumer credit cards have chips as of July. This represents a 105 percent increase in chip card adoption since the Oct. 1 liability shift.
The company also boasts 2 million chip-active merchant locations (representing approximately 33 percent of all U.S. merchants) on its network, a 468 percent increase in chip terminal adoption since Oct. 1, the release said.
“This country is one of the most complex markets in the world so we know things won’t change overnight,” said Craig Vosburg, president of North America for MasterCard. “However, we’re encouraged by the significant progress over the last 11 months. With every additional chip transaction we move closer and closer to our collective goal — moving fraud out of the system.”
The company appears to be making progress toward this goal. MasterCard fraud data from April shows a year-over-year decrease of 54 percent in counterfeit fraud costs at U.S. retailers who have completed or are close to completing EMV adoption.
On the other hand, counterfeit fraud costs increased by 77 percent year over year among large U.S. merchants who have not yet migrated or have just begun the migration to chip.
Chip card use continues to rise in the U.S. according to MasterCard. The company cited a survey showing that 87 percent of U.S. consumer use of chip cards, compared with 49 percent last year.
Braun Research conducted the online survey in the U.S. between June 27 and July 15 among a nationally representative sample of approximately 1,000 adult consumers. The sample was weighted to be nationally representative of the US population as it relates to age, gender, region, ethnicity and race.