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Visa Marks First Anniversary Of EMV Chipcard Rollout In United States

Posted On: 9/30/2016

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TAGS: Visa Inc., EMV one-year anniversary, chip card anniversary, cashless vending, chip-enabled Visa cards, Stephanie Ericksen

SAN FRANCISCO -- Visa Inc. is celebrating the one-year anniversary of the official launch in the United States of chipcards conforming to the EMV specification. With steady progress and growth since Oct. 1, 2015, there are now more than 1.46 million chip-enabled businesses and 363 million chip-enabled Visa cards, the company reported. This makes the U.S. the largest Visa chip card market in the world. The number of Visa chip transactions surpassed half a billion in the month of August, representing a 1,000+% annual increase, Visa added.

Visa's "roadmap" for bringing EMV chip technology to U.S. payments set forth three expected advantages: preventing of counterfeit fraud, accelerating the adoption of mobile payments, and enhancing convenience and payment security for international travelers.

It seems to be working, Visa reported. Businesses that have completed the transition to chip terminals benefited from a 47% reduction in counterfeit fraud in the month of May, compared with the same period a year earlier.

"Migrating the U.S. to EMV chip is a massive undertaking, requiring coordination and collaboration between financial institutions, retailers, and the thousands of service and software providers that make our payments systems work," said Stephanie Ericksen, risk and authentication products vice-president at Visa Inc. "Thanks to efforts across the ecosystem, we're seeing a positive impact on counterfeit fraud. We're focused on continuing that momentum to bring counterfeit steadily down and simplifying the way businesses can adopt chip technology."

One of these enhancement efforts is Quick Chip, a Visa development that reduces the time consumers spend at a chip-enabled checkout terminal to two seconds or less, the company reported; it's said to be fast and easy to implement.

Visa also took additional steps to help merchants and their service providers test and certify their terminal solutions more efficiently, and increased support, consulting and training. Also, to mitigate the financial impact on merchants who are working to implement chip but have not yet completed the process, Visa modified its policies to temporarily cap the number of fraudulent transactions that issuers can charge back to non-chip merchants and their financial institutions. This has resulted in a 50% decrease in chargebacks since March of this year, according to Visa.

The introduction of chip payment technology in the U.S. has coincided with the introduction of secure mobile payment solutions such as Apple Pay, Android Pay and Samsung Pay, Visa pointed out. Card and mobile-based payments now use the same global security standards and encryption technologies, bringing greater flexibility to merchants offering the option to pay by either phone or card.

The growth in mobile adoption also enables solutions that empower consumers to take more control in securing their accounts and stopping fraud, Visa said. Examples of consumer solutions include "mobile location confirmation," which lets account-holders opt in to allow the location of a mobile device to be matched to the location of the transaction, as well as "consumer transaction controls," which lets consumers determine the types of transaction that can be authorized, and to turn their accounts on and off if cards are misplaced or stolen. Consumers can also use transaction alert services to receive real-time text or email notifications for charges, thus spotting suspicious transactions quickly.

And bringing EMV chip technology to the U.S. has delivered more consistent payment experiences to American consumers traveling abroad, and to foreign travelers visiting the U.S. When travelers use chip cards, issuing financial institutions can have greater confidence that those overseas transactions are not the result of counterfeit fraud. Visa also requires self-service checkouts to accept international chip cards without requiring a PIN, making transactions at ticket vending machines, bike-sharing stations and parking meters quick and secure.

In August 2016, financial institutions approved nearly 97% of U.S. Visa chip transactions overseas, compared with about 87% for non-chip cards.

SEE ALSO:

Mastercard Says Switch To EMV Chip Cards Has Cut Fraud Costs By 54%

Visa To Block U.S. Fraud Chargebacks Under $25, Reducing Liability For Vending Operators