Fraudulent Transactions Down 52% Among Chip-Enabled Merchants
Visa recently released a year-in-review highlighting the changes America has experienced since upgrading to chip card technology. According to the official report from Visa, fraudulent charges at chip-enabled merchants dropped 52% from September 2015 to September 2016. Counterfeit fraud declined 14% for all merchants in the same timeframe.
The number of chip-enabled Visa cards in America nearly doubled from December 2015 to December 2016, increasing from 212.7 million to 408.1 million. There are currently 188.7 million chipped Visa credit cards in the United States and 219.4 million chipped Visa debit cards.
There has also been a dramatic increase in the number of merchants that accept chip credit cards, jumping form 766,000 in December 2015 to 1.81 million in December 2016. 39% of storefronts in America now accept chipped cards, with 82% being small or medium sized businesses. Nearly half (49%) of Visa’s in-store payments come from chip-enabled merchants.
Visa reported 945 billion chip transactions in December 2016, totaling $53.8 billion in sales. 96% of all Visa credit card payments were completed on chipped cards during that month, though not all of them were completed using a smartchip. Most chipped cards still have magnetic strips on the back, giving consumers the option to swipe their cards instead of dipping them. Some Americans are having a hard time adjusting to the idea of dipping instead of swiping their cards simply because it takes a few seconds longer to process the transaction.