Two years ago, US retailers and lenders began converting to chip-based credit card technology. The goal was to reduce payment processing fraud. Sinceworldwide losses from card fraud reached US$21 billion in 2015, and by 2020, that number is anticipated to account for US$31 billion, it’s high time you paid greater attention to fraud prevention. Why not work with chargeback insurance providers?
Credit Card Processing Fraud: Chip Cards
During these two years, the industry has been fighting fraud with the help of chip cards. The good news is that retailers who are already using these hard-to-duplicate chip card readers speak about a 70% drop in fraud attempts. What about those who aren’t accepting these cards?What about thefraud that occurs onlinewhere a physical credit card isn’t presented?
According to Megan Geuss, a staff editor at Ars Technica, the numbers provided by retailers who have made the switch to chip card readers, show that chip cards are safer than magnetic ones. What makes them so safe?
It’s basically the chip that’s embedded in the card. In the US, the system still relies on chip and signature, and signature is less secure. Chip creates a unique code that makes it harder for fraudsters to steal your credit card numbers and then reuse them.
However, only 59% of US storefronts can accept chip cards right now. This is good, but if you look at the number (37%) available two years ago, this seems like a slow transition. This can’t be said about European countries, where 95% of stores are now able to accept chip cards.
Fighting Payment Processing Fraud: Chargeback Insurance Providers
Chip-embedded cards don’t prevent card-not-present (CNP) fraud, which is when you buy something online or over the phone ororder, for example, a pizza. However, there’re other ways to prevent CNP fraud, and companies are working on this right now, especially with the ongoing increase of eCommerce.
Card networks are working on things like 3D Secure 2.0, which makes online payments more secure. 3D Secure 2.0 is like a future thing. Tokenization is also being used. It hides the user’s credit card details and replaces it with a token.
With all this in mind, it’s critical to turn to a reputable payment processor that can help you fight chargebacks with ease. Look for reliable and secure chargeback insurance providers, and you’ll be able to enjoy the necessary fraud prevention and chargeback-related solutions.
Fraudulent activity and theft continue to worry people all over the world. Many people are constantly concerned about this. Companies in the field are focused on making credit cards safer than ever. With the right chargeback insurance provider, you can get the best protection against online fraud.
Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, serving both traditional and high-risk merchants. His passions include producing music and traveling the world. eMerchantBroker is America’s No. 1 chargeback insurance provider, serving both traditional and high-risk merchants.