US Credit Card Fraud Rises Ahead of EMV

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The United States is the last G20 nation to make significant use of EMV credit card technology, and credit card fraud rates are rising as a result. As US credit card companies prepare to make the long transition to EMV-enabled cards, the widespread credit card fraud from American shores is expanding and making the jump to other countries. 

  us credit card fraud

What is EMV Technology?

EMV chips are advanced security microchips that are planted into the face of a credit card. Instead of the old magnetic strip credit cards, EMV credit cards are nearly invulnerable to fraud, with some requiring a personalized PIN in order to make payments. The technology is so successful that most major European countries have made the switch completely. US travelers are even reporting that their cards won't work while in Europe since they aren't equipped with an EMV chip.

EMV was conceived by Europay, Visa, and MasterCard as a way to battle against credit card fraud in the 21st century. The United States is the last of the G20 nations to embrace EMV, but credit card companies here have plans in place to fully distribute EMV cards by 2017. However, this process is becoming more and more difficult due to the sheer number of cards that must be manufactured.

US Credit Card Fraud: A Global Problem

As US cards lack advanced security features, they are often targeted by hackers and fraud rings worldwide. In some cases, credit card fraud rates in other countries are rising due to the Americans' lack of EMV technology. The world saw the vulnerability of US credit cards late last year, when millions of card numbers and other payment data were lifted from Target's database. The months-long hacking operation was the largest in US history.

How to Stop Credit Card Fraud

Of course, enabling EMV technology in the US would be a great first step in countering credit card fraud, but the American public also need to stay vigilant. Consumers should actively monitor their credit card statements and track their purchases. Merchants should take the proper steps to secure their site and protect their consumers' data.

Another part of credit card fraud that affects e-commerce merchants is chargebacks. Some use the chargeback process to commit a form of fraud called friendly fraud. If merchants aren't careful, they could end up being scammed and paying harsh chargeback fees.

About Instabill

Instabill is a global merchant services provider based in the US. Since we assist merchants in the e-commerce market to obtain merchant accounts, we also seek to inform them about the latest news and trends in credit card fraud. Our complete chargeback guide, Chargebacks 101 for Merchants, will also help decrease the risk of friendly fraud and other forms of fraud. To learn more about out services, simply contact a live representative today.

About the Author

 winning a chargeback dispute

Dylan Freni is a copywriter at Instabill. He writes articles for the company’s nine websites, including three articles per week for the Instabill blog. Frequent topics include merchant services, payments industry news, e-commerce tips, and merchant account how-to’s.


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Jul 23, 2014 Category: General Posted by: Marketing
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