The FINANCIAL — MasterCard on May 5 announced a new campaign to help the approximately nine million U.S. small businesses already engaged in electronic payments prepare for EMV or chip card technology.
Called Chip 360o, the program aims to communicate actionable information, educate on steps to take and advocate why the change is needed to protect cardholders, according to MasterCard.
EMV is a global standard for authenticating credit and debit card transactions to help minimize counterfeit fraud. Microchips or chips embedded in the card face ‘talk’ with chips in payment terminals or ATMs creating unique codes for each transaction. The unique codes make the cards almost impossible to copy or counterfeit. The United States is the only country in which counterfeit-card fraud is consistently growing — accounting for 47 percent of the world’s counterfeit fraud — costing banks $3.4 billion and merchants an additional $1.9 billion per year, according to The Nilson Report (2012).
“Chip cards all but eliminate counterfeit fraud. We know this because we’ve seen significant fraud reductions in all 80+ countries where EMV has been implemented,” said Carolyn Balfany, senior vice president of Product Delivery – EMV, MasterCard. “The power of chip is realized as more cards and terminals are enabled and used. The goal isn’t to move card fraud around the system. The goal is to drive card fraud out of the U.S. – benefitting banks, merchants and, most importantly, consumers.”
The Payment Security Taskforce estimates that 63 percent of credit and debit cards will contain EMV chips by the end of this year, expanding to 98 percent by the end of 2017.The estimate indicates that banks and retail outlets are delivering on their promise to secure consumer payments with chips. The industry wants to ensure that small- and mid-sized businesses – employing less than 500 people – have the tools to keep pace.ment technologies.