The US migration to EMV transactions is making progress. Currently, 52% of merchants can accept EMV payments and 26% have contactless-capable terminals. Twenty-eight percent of those with contactless-capable terminals can accept contactless cards. The majority of card holders have also made the switch to EMV as 63% of all cards are chip cards.
This is good news. EMV equipment and cards have gone a long way in reducing counterfeit credit card fraud. According to Visa, instances of fraud decreased by 47% from 2015 to 2016 thanks to businesses upgrading to EMV equipment.
But despite the security benefits of EMV payments, the adoption of this technology hasn’t come easily. Most of us are very familiar with the wait times accompanying EMV transactions, which can last up to 30 seconds. Business owners also waited a long time to receive certification for integration of EMV standards. Among retailers with nonfunctioning EMV equipment, 57% are waiting on certification and 60% have been waiting at least six months.
Updates to EMV Transactions
To combat the long transaction times, credit card companies have introduced quick chip technology. Quick chip tech speeds up transactions by allowing consumers to insert a chip card before the final amount is known. This cuts transaction times down to about 2.5 seconds and gives shoppers an experience similar to the traditional swipe method.
Each of the major credit card companies (Visa, MasterCard, American Express and Discover) have launched their own version of quick chip to streamline payment processing. Quick chip technology integration is a simple process for merchants that already have certified EMV terminals. All that’s needed is a minor software update from their payment provider.
By the end of 2017, EMV adoption is expected to reach 99% in the U.S. Although it got off to a rough start, recent updates and improvements to the technology promise a bright future for EMV.
If you’d like to learn more about how to protect your transactions with EMV equipment, please contact us here.