Debit Card Fraud Dropped 28% in 2016

Debit Card Fraud Dropped 28% in 2016

August 15, 2017         Written By Bill Hardekopf

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.

The information contained within this article was accurate as of August 15, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time