Wednesday, September 20, 2017 | Today's Vending Industry News
Mastercard Says Switch To EMV Chip Cards Has Cut Fraud Costs By 54%

Posted On: 9/15/2016

  • Printer Friendly Version
  • Decrease Text SizeIncrease Text Size
  • PDF


TAGS: Mastercard, EMV, cashless payment, vending, vending machine, EMV, chip card

SEARCH TERM PURCHASE, NY -- As the one-year anniversary of the shift to chip approaches in the U.S., Mastercard has unveiled data suggesting the positive impact the technology is having for issuing banks, merchants and consumers.

The biggest benefit of chip technology is minimizing the cost of fraud caused, in part, by the use of counterfeit cards. Now, the chips in terminals "talk" with the chips on cards creating unique codes for all purchases that protect cards from being counterfeited.

Mastercard fraud data show a 54% decrease in counterfeit fraud costs at U.S. retailers who have completed or are close to completing EMV adoption, when comparing April 2016 to April 2015.

Demonstrating the power of EMV and the risk of not adopting it, counterfeit fraud costs increased by 77% year-over-year among large U.S. merchants who have not yet migrated or have just begun the migration to chip.

As of July 2016, 88% of Mastercard U.S. consumer credit cards have chips, representing a 105% increase in chip card adoption since the Oct. 1, 2015 liability shift.

The company also sees two million chip-active merchant locations on its network, a 468% increase in chip terminal adoption since Oct. 1, 2015. Two million merchants represent 33% of all U.S. merchants.

Of the two million chip-active merchant locations, 1.3 million are regional and local merchant locations, representing a 159% increase since Oct. 1, 2015.

U.S. consumers have also been central to chip card adoption, following an initial learning curve on the chip experience. Chip card use continues to rise in the U.S. according to a recent Mastercard survey of more than 1,000 U.S. consumers. Nine out of 10 Americans commonly use chip cards, up 38% year-over-year, from 49% in 2015 to 87% in 2016.