At One Payment, we love providing our readers with the latest news on chip technology. Unfortunately, with every major technology upgrade comes chip card headaches, and this article will inform you about recently discovered issues.
Believe it or not, while chip cards were touted as drastically improving security, they actually haven’t done that much in terms of decreasing credit card fraud. While online commerce has drastically increased, thereby eliminating the option of paying by chip card, criminals have discovered other ways to make fraudulent transactions. Shockingly, this is partially due to the fact that there are still many merchants who have not upgraded to the new card readers, despite the fact that the deadline to do so was almost two years ago.
A Shocking Statistic
While merchants had a deadline to upgrade their card readers, many have chosen not to, all for various reasons. A recent study showed that 64 percent of all chip credit card fraud cases occurred in situations where the merchant had not upgraded to the new reader. Consumers should be angered about this situation, especially since the majority of these fraudulent transactions are preventable.
Taking the Easy Way
Without a doubt, online commerce is the easiest platform for fraudulent transactions, because all the criminal needs is a card number, expiration date, and security code. In some cases, it’s not even necessary to have billing information.
The Good News
However, do not despair. The introduction of chip credit cards has cut down on the creation of counterfeit cards, where thieves would just duplicate the numbers onto a fake card. While counterfeiting has decreased, we still have an issue with fraudulent transactions. While no technology is perfect, once merchants continue to upgrade to the new card readers, fraudulent transactions will be on the decline before you know it!