Go ahead and pat yourself on the back, local business owners!
Almost a year after store owners became liable for counterfeit card use there are two million who now accept chipped cards – a total provided by MasterCard.
Store and restaurant acceptance is one of the required components in the chipped card introduction. The other two are the companies that issue the cards and the consumers who use the cards.
1.3 million store locations of the 2 million are local and regional stores and restaurants, like those that line Main Streets in Montgomery County. On the other hand, many of the larger national stores have complex point of sale systems that make it harder to incorporate the new technology in contrast to simpler countertop point of sale terminals.
Pointing to success of the chip reader implementation, MasterCard’s latest fraud data also shows a decrease in counterfeit fraud costs by 54% by stores that have completed the transition to accepting chipped cards.
87% of U.S. consumers are using chipped cards which is a sharp increase from 49% in 2015. Driving the use is that more banks and credit unions have issued chipped cards to consumers.
The most common issue with the new chipped cards is the extra time it takes to process the transaction – sometimes 20 seconds longer that the traditional swiped transaction. This relatively short amount of time may seem lake a lifetime for shoppers on the move, but the benefit in reduced counterfeit fraud is making a big difference.