A new study suggests using EMV cards that have both a magnetic stripe as well as the EMV chip aren’t offering consumers or businesses merchant fraud protection.
According to DigitalTransactions.net, the report released by Aite Group LLC and ACI Payment Systems revealed that incidents of fraud occur more commonly in countries where the cards have traditional magnetic stripes in addition to the EMV chip because they are more vulnerable to skimming.
At least 300 EMV cardholders in each of the 17 different countries utilizing them were surveyed for the report. In Mexico, 44 percent reported an incident of fraud, compared to 42 percent in the U.S. and 34 percent in the United Kingdom. The EMV cards being used in these countries still have magnetic strips so they can be used more widely.
However, in countries where EMV cards are standard, fraud was significantly reduced. For instance, only 12 percent of those in Sweden and the Netherlands who use the cards had experienced fraudulent charges.
According to EMVCo.com, in the fourth quarter of 2011, there were more than 1.5 billion EMV compliant chip-based payment cards in use worldwide. These cards contain an embedded microprocessor which contains the information needed to use the card for payment, and is protected by various security features.