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News
Perception versus reality • 48 percent of merchants with average ticket sizes of
$10 and below have upgraded to EMV.
The Aite report acknowledged the contentiousness of
the chip-and-PIN versus chip-and-signature debate and The company derived its data from hundreds of thousands
noted that large retailers were generally more enthusiastic of transactions processed through its payment gateway
about implementing chip and PIN than their smaller across all 50 states between October 2015 and June 2016. A
counterparts. The authors found "misperceptions within full copy of the report can be found at www.cardflight.com/
the retail community about both the impact of lost/stolen resources-emv-migration-tracker-july-2016.
card fraud as well as the tools that can be used to mitigate
the risk of fraud." EMV integral to payments
After surveying 361 U.S. merchants, the researchers found The recent renaming of the EMV Migration Forum to
a disparity between perceived (1.7 percent) and actual the U.S. Payments Forum may be another indication
levels (9 percent) of card-present fraud among the group. that U.S. EMV adoption has progressed beyond an early
"There appears to be a disconnect between the perceived implementation phase. The Princeton, N.J.-based forum
value of chip-and-PIN implementation in the abstract and led the industry-wide chip migration, providing expanded
merchant expectations of fraud reduction," the authors support to payments stakeholders while broadening its
wrote. They also detected an array of underutilized focus to other emerging payment technologies.
security measures, such as tokenization, encryption,
checking customer IDs and implementing secure firewalls, "For any emerging payments technology to take hold in the
which the authors suggested could potentially protect United States, there needs to be a forum for all payments
against fraudulent transactions. stakeholders to build relationships, understand each other's
unique requirements, build best implementation practices
EMV advances beyond and work out issues together," said Randy Vanderhoof,
Director of the U.S. Payments Forum. "We've seen the
compliance tremendous amount of progress that can be made using
this model of forum with the U.S. EMV chip migration,
R etailers may be moving past the critical first and so we are now expanding our charter and becoming
phase of EMV (Europay, Mastercard and Visa) the U.S. Payments Forum, so the payments industry can
adoption, according to recent studies. A new continue to work closely together to effectively address
report published in July 2016 by New York- the implementation of additional technologies such as
based CardFlight Inc. used aggregated data to evaluate mobile payments, card-not-present security solutions and
adoption levels among end users of the company's mobile tokenization."
payments app. The results were better than expected,
the company reported. "Since we were one of the first Vanderhoof called the migration to chip payments "the
companies to bring an EMV mobile payment solution to biggest and most complex implementation by the U.S.
the U.S. market, we feel it's important to collect data and payments ecosystem," and he expects it to remain a top
share it with the rest of the industry," said Derek Webster, priority for the forum. In addition to continued support
CardFlight founder and Chief Executive Officer. of chip migration and updates to payment specifications
and standards, forum members will provide guidance
The CardFlight EMV Migration Tracker assessed the on industry best practices, technical issues and emerging
impact of EMV chip card migration on individual payment schemes. They will also work with merchants,
businesses and the retail community. Following are some acquirers and service providers to facilitate consumer
highlights from the report: adoption and improve the overall consumer shopping
journey.
• Chip cards represented more than 70 percent of
consumer credit cards processed by CardFlight Diversified members, projects
merchants.
Member organizations of the U.S. Payments Forum
• 94 percent of American Express Co. cards were include global and domestic payment networks, financial
chip cards, the highest percentage of all payment card issuers, payment processors, merchants, acquirers,
card brands processed by CardFlight merchants. vendors and industry associations. Its new constituent
groups representing emerging payment segments include
• More than 64 percent of CardFlight merchants use mobile payment, ecommerce and cloud technology service
EMV-compliant payment card readers, more than providers.
three times the national average.
The forum has produced an array of educational resources
• 78 percent of CardFlight merchants with average since it was established in 2012. In addition to its library of
tickets of $200 and higher were EMV-enabled. resources, white papers, webinars and educational video
recordings, its contributions include:
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