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US EMV migration: Chip impact on merchants

As the one year anniversary of the US EMV migration shift to chip approaches new data has been released confirming the positive impact the technology is having on issuing banks and merchants.

Chip Impact on Merchants

The biggest benefit of chip technology is minimizing the cost of fraud caused, in part, by the use of

US EMV adoption rates

US EMV adoption rates

counterfeit cards. Mastercard reports 2 million chip-active merchant locations on its network, a 468 percent increase in chip terminal adoption since October 1, 2015. Two million merchants represent 33 percent of all US merchants.

Of the 2 million chip-active merchant locations, 1.3 million are regional and local merchant locations, representing a 159 percent increase since October 1, 2015.

Mastercard fraud data shows a 54 percent decrease in counterfeit fraud costs at US 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 percent year-over-year among large US merchants who have not yet migrated or have just begun the migration to chip.

“Payment cards are an essential part of commerce; EMV requires a change to the customer experience as the industry shifts from swipe to chip,” said Brian Riley, director, Credit Advisory Service, Mercator Advisory Group.

“There is no doubt chip cards will curtail fraud and it is exciting to see enhancements at the point of sale that will propagate usage, reduce friction and accelerate transaction time.”

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