Visa’s Vice President for Risk Products Stephanie Ericksen has reported in an interview that since the credit card company began issuing chip-enabled cards, the amount of fraudulent activity seen has decreased by over 18 percent as of late 2015. This information comes from analyzing the transactions of five retailers that have been processing charges from debit and credit cards that have the smart chip embedded in them. The company also surveyed five different retailers that do not yet use chip readers; those retailers saw an increase of over 11 percent in fraudulent charges.
One of the drawbacks to using a chip-enabled credit card, and one of the reasons retailers have given as to why they have not fully implemented chip readers at their businesses, is that the time it takes to complete a chip transaction is significantly longer than the time it takes for a customer to swipe their card. This is owed to the more stringent security protocols and checks that occur with a chip.
However, Visa has announced that they have developed a new type of chip reader that will reduce the transaction time to a maximum of two seconds. Card users will be able to remove their cards from the reader before the transaction is fully finalized, cutting down on the amount of time they spend standing at the register waiting. Visa hopes this improvement will make chip readers more appealing to merchants.
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