Do the benefits of EMV mean you should consider migrating now? And how can you achieve competitive differentiation with your EMV rollout?
Why EMV?
The first, second and third reason for the migration to EMV is stemming fraud losses.
While there are some reduced operational costs via the decrease and automation of customer disputes, these are relatively minimal. People also point to the exciting potential of new, value-added products such as loyalty schemes, online banking two-factor authentication and national identification, but EMV’s impressive reduction of fraud losses dwarfs the benefits of these products. Case in point: from 2001-2010, UK card fraud dropped by about 50% with EMV smartcards.
According to the UK Payments Administration: Fraud Facts 2010, the U.S. was the destination of choice for U.K. fraud abroad from 2006-2009 by two to three times more than the next fraud migration recipient. With the U.S. finally setting the stage to roll out EMV, it will no longer be the world’s easy target for fraudsters and the global weak link in terms of card fraud.
Why now?
Local and regional legislation may differ, but there are three common reasons why all organizations who have not already midrated to EMV should consider acting now:
Reduce exposure to fraud
Card fraud is migrating to those countries and those institutions that haven't implemented EMV.
Improve customer service
Magnetic stripe only cards are no longer accepted in many areas.
Roll-out strategy
A phased approach to migration improves an organizations ability to test and improve its services as well as greater time to scope new products. And a planned rather than forced migration will help to ensure that any technology investments are future proof rather than simply the quickest to implement.
See the impact of EMV in your region >>