What Will 2015 Bring for Chip and PIN?
Randstad Technologies, a provider of IT talent and solutions with deep experience in point-of-sale installations, announces its 2015 predictions for Chip and PIN progress and challenges.
Half of All Retailers Won't Meet the October Deadline. This will expose thousands of merchants and restaurants to fraud charges not imagined today. Many retailers and restaurants don't think the potential for fraud charges outweighs the cost of conversion, but they will be in for a rude awakening.
Deadline Will Spur Increase in Fraud. The rate of fraud won't decrease; it will go up to record levels just before the deadline. Afterwards, we will start to see record levels of Card Not Present (CNP) fraud in the U.S., just as it has risen elsewhere Chip and PIN has been adopted.
Q4 2015 Financial Results Will Suffer for Slow Adopters. Slow-moving merchants who don't adopt Chip and PIN by the liability shift deadline (10/2015) will see consequences in their year-end financial reports due to fraud occurring with "swipe and signature" technologies.
Apple Pay Will Gain Traction; Chip and PIN Here to Stay. While Apple Pay and other mobile payment technologies will continue to rise in popularity and usage, penetration won't yet make contactless payments ubiquitous. Chip and PIN technologies will remain a more dominant point of sale technology for the foreseeable future with 800 million debit and credit cards to be replaced during the transition to EMV (Europay, MasterCard and Visa, the global standard for inter-operation of "Chip" cards).
Chip-Enabled Cards Slow to Circulate. Only about one third of debit and credit cards will be upgraded by October 2015, unfortunately leading many merchants to put off making the point of sale technology transition.
Device and Expertise Shortages. Starting in Q3 of 2015, merchants who want to make the Chip and PIN transition will face limited device availability and scarcity of already committed deployment partners and application writers. Many merchants will run out of time to get EMV certification on their payment process.
Lobbyists Will Push for Delay. Business interests will lobby Congress to delay the deadline to relieve retailers of the liability shift until a later date. The closer we get to the deadline, the more imminent this will become.
Half of All Retailers Won't Meet the October Deadline. This will expose thousands of merchants and restaurants to fraud charges not imagined today. Many retailers and restaurants don't think the potential for fraud charges outweighs the cost of conversion, but they will be in for a rude awakening.
Deadline Will Spur Increase in Fraud. The rate of fraud won't decrease; it will go up to record levels just before the deadline. Afterwards, we will start to see record levels of Card Not Present (CNP) fraud in the U.S., just as it has risen elsewhere Chip and PIN has been adopted.
Q4 2015 Financial Results Will Suffer for Slow Adopters. Slow-moving merchants who don't adopt Chip and PIN by the liability shift deadline (10/2015) will see consequences in their year-end financial reports due to fraud occurring with "swipe and signature" technologies.
Apple Pay Will Gain Traction; Chip and PIN Here to Stay. While Apple Pay and other mobile payment technologies will continue to rise in popularity and usage, penetration won't yet make contactless payments ubiquitous. Chip and PIN technologies will remain a more dominant point of sale technology for the foreseeable future with 800 million debit and credit cards to be replaced during the transition to EMV (Europay, MasterCard and Visa, the global standard for inter-operation of "Chip" cards).
Chip-Enabled Cards Slow to Circulate. Only about one third of debit and credit cards will be upgraded by October 2015, unfortunately leading many merchants to put off making the point of sale technology transition.
Device and Expertise Shortages. Starting in Q3 of 2015, merchants who want to make the Chip and PIN transition will face limited device availability and scarcity of already committed deployment partners and application writers. Many merchants will run out of time to get EMV certification on their payment process.
Lobbyists Will Push for Delay. Business interests will lobby Congress to delay the deadline to relieve retailers of the liability shift until a later date. The closer we get to the deadline, the more imminent this will become.