New Chip Cards May Actually Increase Credit Card Fraud, Hurt Merchants
Major Banks and credit card companies such as American Express have developed “fraud free” and encrypted chip-enabled cards to cut costs while transferring the burden of fraud compensation onto the merchant. However, many are still unaware that a cheaper and more secure technology already exists. The credit card manufacturers have integrated EMV chips (Europay, MasterCard and Visa) into the credit cards, which create unique payment codes for every transaction. The implementation of the EMV technology disables the duplication of payment credentials to settle other transactions.....
Related News
Credit cards are one of the most common payment methods around the world, yet they are also one of the least secure forms of payment. There is no other payment method in history suffering from such a high rate of fraud and chargebacks, as these cards were never intended to be used for online payments. Several banks have issued a new version of their credit cards, which should make them more secure. Whenever someone holds up a credit card, there will be a plastic-looking chip on the left side of the card. This chip is designed to be read by credit card processing terminals all over the....
In an article published in TopStockAnalysts, analyst Jody Chudley argues that the high cost of credit card fraud will drive many merchants to Bitcoin. And if merchants prefer Bitcoin then consumers will adopt it and, so, the outcome is that a lot of today's Bitcoin startups' stock prices will soar. BitcoinShop.us is, according to the analyst, ideally positioned and here's why. Credit Card Fraud Plagues Retail. A 2009 study by Lexis Nexis shows that US merchants lose about $190 billion per annum to credit card fraud. A recent example involved the online retailer Target who's database was....
A company based out of New York City called HyprKey aims to accomplish a three-factor level of security that credit cards, Apple Pay, CurrentC and Bitcoin haven’t. The day of paying for goods and services with our mobile devices instead of swiping credit cards is dawning. Apple Pay links customers’ credit cards to their mobile payment system, their ads seem to be everywhere, and their presence is increasing in stores. “Other attempts at tokenization of virtual credit cards have raised processing fees for merchants and wallet platforms. HYPR-3 seeks to lower them by reducing fraud. By....
Bringing additional security to the payment sector is a tough battle as there are so many hurdles to overcome, especially when it comes to plastic cards. The introduction of EMV chips to plastic cards seemed to be a major step in the right direction, but as it turns out, EMV transactions can be disabled, forcing merchants to swipe the card. The....
Credit cards with EMV Chips are not as secure as it was initially thought to be. Bitcoin continues to be a more secure payments option. The ongoing competition between fiat based electronic payments and digital currency payments doesn’t have a winner yet. The credit and debit card based electronic payments systems score over Bitcoin payments when it comes to number of users and the rate at which transactions are processed. However, Bitcoin continues to lead the way in the security department. Credit Card frauds have hit an all-time high across the world. In last year alone, total damages....