Boston, June 10, 2014 – The United States is finally on its way to embracing the EMV standard, a framework for interoperable chip-based payment cards that significantly reduces the risk of counterfeit card use. While federal regulation delayed the industry's EMV migration, sharply rising card fraud, mobile payments technology, and the decreasing cost of chips and terminals prompted the payment networks to announce an October 2015 liability shift in the U.S. market. With only months to prepare, where can the U.S. payments industry look for guidelines to navigating this shift? What are U.S. issuers' plans with regard to deployment time frames and cardholder verification mechanism? And what will happen to fraud rates in the aftermath?
This Impact Report, based on interviews with executives from payments networks and 18 of the top 40 issuers in the United States, analyzes the migratory experiences of five countries that preceded the United States in adopting EMV: the United Kingdom, Australia, Brazil, Mexico, and Canada. The report also describes the U.S. path to EMV, includes recommendations for U.S. issuers, and projects credit card fraud loss in the wake of the migration.
This 31-page Impact Report contains 21 figures and two tables. Clients of Aite Group's Retail Banking service can download this report.