Visa has released US EMV migration data for September 2017 — figures that are an important industry benchmark because Visa is the largest card network by volume in the US. In just under two years after the EMV liability shift took affect, EMV is finally becoming standard in the US.
- Most consumers now have chip cards. Just under two-thirds of all US Visa cards, or 463 million cards, had chips as of September. That’s a massive leap from September 2015, the month before the EMV liability shift took effect, when just 160 million cards were EMV-enabled. Visa debit cards are still lagging the overall trend — about half still remain chipless.
- Over half of Visa merchants now accept chip cards. Many merchants opted not to upgrade their terminals early on the grounds that the cost of the upgrades would outweigh the resulting fraud savings. But as time passes, a greater percentage of those merchants are reaching their scheduled upgrade dates, which means greater EMV terminal penetration. Fifty-five percent of all Visa merchants now accept chip cards, up from 39% in December 2016.
EMV is leading to a significant drop in counterfeit fraud. The combination of increased EMV card penetration and rising merchant participation is driving growth in chip-on-chip volume, which hit $59.4 billion in September, up twelvefold from two years earlier. Merchants who offered EMV transactions saw a 66% decline in counterfeit fraud — that’s even higher than the 52% decline reported last December. And while that’s good news for in-store sellers, it means that card-not-present (CNP) fraud will likely continue to rise, as fraud moves to channels with weaker security.
Dan Van Dyke, senior research analyst for BI Intelligence, Business Insider’s premium research service has written a detailed report that explores the digital payments ecosystem today, its growth drivers, and where the industry is headed. The report also:
- Traces the path of an in-store card payment from processing to settlement across the key stakeholders.
- Forecasts growth and defines drivers for key digital payment types through 2021.
- Highlights five trends that are changing payments, looking at how disparate factors, such as surprise elections and fraud surges, are sparking change across the ecosystem.