Debit Card Fraud Dropped 28% in 2016
Debit card fraud losses dropped 28% in 2016 after the industry’s October 2015 transition to smartchips, according to PULSE’s just-released 2017 Debit Issuer Study.
PULSE, one of the largest debit card networks in America, studied the changes in the payment cards industry since the U.S. transitioned from magnetic strip cards to smartchip cards. The study found that 80% of debit cards in America have now been converted to chip cards. While debit card fraud losses dropped 28% from 2015 to 2016, there were still $900 million in fraud losses last year. Although the U.S. is seeing positive results from chipped cards, there is plenty of room for improvement.
Mobile wallets are becoming more debit card friendly. Three out of every four debit card issuers have cards that can be loaded on at least one mobile wallet. Debit card enrollment on Apple Pay increased by 80% last year. But this increased adoption has not resulted in greater use. Mobile wallet transactions accounted for less than 1% of debit card purchases in 2016.
On average, Americans have 23.6 debit card transactions per month. That represents a 6% increase compared to year-ago levels. The total number of debit card transactions in the country increased by 7% from 2015 to 2016.
“The average consumer now uses their debit card 3% more often than they did in 2010, and for more transactions of lower value, indicating that debit is a fundamental financial tool for their everyday lives,” said Steve Sievert, PULSE’s Executive Vice President of Marketing and Brand Communications.