11.06.15
Gemalto launched a comprehensive online resource covering key considerations banks will face following the migration to EMV. According to Aite, by the end of this year, 70% of U.S. credit cards and 41% of U.S. debit cards will be EMV-enabled. Based on typical industry patterns following an EMV deployment, banks can anticipate new business opportunities and challenges.
“EMV and Beyond” explores the next steps for banks navigating this rapidly changing environment. New trends will emerge, including card customization, an evolution in consumer behavior toward next-generation contactless EMV and shifts in fraud to online channels. Counterfeit card fraud, currently one of the most prevalent forms of credit card fraud, will decline with the deployment of chips cards.
Banks should anticipate that as EMV secures the point-of-sale, fraudsters will naturally move to the weakest link in the payment ecosystem such as card-not-present (CNP) transactions and digital channels. In the five years following Canada’s migration to EMV, CNP fraud increased by 133%. Aite anticipates a similar pattern in the US, with CNP fraud losses expected to exceed $6 billion by 2018.
The next step for banks is securing eCommerce transactions to protect against CNP and web-based fraud. Gemalto’s online resource explains the different ways banks can address the problem and mitigate the threat early on. A consumer friendly and easy to deploy solution is the dynamic code verification payments card (DCV). The DCV card is an “intelligent” card featuring a small ePaper screen that displays a dynamic card verification value for each transaction. The consumer enters the dynamic value during the online transaction ensuring a simple, convenient solution to eCommerce fraud.
“As technology and payments converge, banks are in a strong position to provide new trusted digital services to their customers,” said Bertrand Knopf, SVP of secure transactions at Gemalto.
“EMV and Beyond” explores the next steps for banks navigating this rapidly changing environment. New trends will emerge, including card customization, an evolution in consumer behavior toward next-generation contactless EMV and shifts in fraud to online channels. Counterfeit card fraud, currently one of the most prevalent forms of credit card fraud, will decline with the deployment of chips cards.
Banks should anticipate that as EMV secures the point-of-sale, fraudsters will naturally move to the weakest link in the payment ecosystem such as card-not-present (CNP) transactions and digital channels. In the five years following Canada’s migration to EMV, CNP fraud increased by 133%. Aite anticipates a similar pattern in the US, with CNP fraud losses expected to exceed $6 billion by 2018.
The next step for banks is securing eCommerce transactions to protect against CNP and web-based fraud. Gemalto’s online resource explains the different ways banks can address the problem and mitigate the threat early on. A consumer friendly and easy to deploy solution is the dynamic code verification payments card (DCV). The DCV card is an “intelligent” card featuring a small ePaper screen that displays a dynamic card verification value for each transaction. The consumer enters the dynamic value during the online transaction ensuring a simple, convenient solution to eCommerce fraud.
“As technology and payments converge, banks are in a strong position to provide new trusted digital services to their customers,” said Bertrand Knopf, SVP of secure transactions at Gemalto.