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So this should really reduce a lot of the fraud at least that we have been experiencing here in the U.S. Ajay Bhalla: Absolutely. EMV has been used for 20 years, in over 150 countries, and we’ve seen significant reduction in counterfeit fraud in countries where EMV has been launched. We’re delighted that the U.S. has embraced innovations in payments technology and, by the end of 2017, it is predicted by the U.S. Payment Security Taskforce that more than 98 percent of cards will be chip enabled. When it comes to the roll out, what have you been witnessing? Are you noticing a difference within the regions of the U.S. as far as how smoothly the transition is taking place? Ajay Bhalla: EMV is an essential upgrade to the U.S. payments infrastructure but as importantly it will take time. You can’t just flip a switch and assume all necessary changes are made. The U.S. is moving as fast – or faster in some cases – than other markets. And, with the complexity of so many players – think International Organization for Standardization (ISOs), payment service providers, terminal manufactures, acquirers, merchants, etc. – there’s a lot of work that has been done.  So we’re very encouraged. 72

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Six months on from the October 1, 2015 liability shift, we are seeing great collaboration within the industry to help drive card fraud out of the U.S. In March of this year, we assessed where we are since October. More than two-thirds – 67 percent – of U.S.-issued MasterCard-branded consumer credit cards now feature chips. This represents a 51 percent increase in the number of consumer credit cards with chips in market since the October liability shift. Consumers can use their chip cards in more places, as 1.2 million U.S. merchant locations – an increase of 121 percent – have turned on their terminals and are accepting chip card payments. In addition to national retail chains, approximately one million local and regional merchant locations are accepting chip cards today. That’s 170+% increase since October! We have focused our efforts on assisting banks, merchants, and consumers during the transition. We are committed to educating our stakeholders on how the transactions work and assisting them with the production processes and the transition.   I would agree with that statement and as far as the delay goes, some retailers are still in the process of communicating the process to their cashiers. I myself have witnessed

the confusion that can occur between the cashier and a consumer when the cashier is not equipped to answer questions about the change, I think this will clear up as everyone becomes more familiar. What about the case where merchants have the systems in place but they aren’t yet using the chip feature? Ajay Bhalla: The in-store EMV implementation is a process. We need to continue to educate everyone in the payments process about the ease and success of chip-enabled cards, and show how others have embraced the improved technology in several countries around the world. There will still be some cases where merchants have enabled it but have not begun using it, or staff are not equipped to use it, but adoption and training with new technology takes time. Adapting to new technology really comes down to educating customers and merchants, and the U.S. has done a remarkable job so far. Delays and challenges is merely part of the learning curve which is normal for any new technology. Our 2015 EMV consumer research  shows that so far, 8 of 10 consumers find EMV  more secure, easier to use, and more reliable.

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Global Banking & Finance Review - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...

Global Banking & Finance Review - Business and Financial Magazine  

Global Banking & Finance Review is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Vid...