Chip Cards Reduce Fraud - Other News

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Chip Cards Reduce Fraud

Chip Cards Reduce Fraud

Add to Favorites:
Chip Cards Reduce Fraud

Debit cards outfitted with chip-based technology have had a direct effect on fraud, according to the new 2017 Debit Issuer Study, commissioned by PULSE, finding that financial institutions in the United States that have issued these cards have dealt with less fraud.

In 2015 the liability shift occurred, and since that time about 80% of debit cards held by U.S. Consumers have been outfitted with chip-based technology. Going hand and hand with this conversion, loss due to fraud in 2016 went down by just about 28% when compared to fraud levels in 2015.

“The financial services industry has taken a number of measures that likely impacted the reduction in fraud losses for debit card issuers,” said Jim Lerdal, vice president of Fraud and Risk Management for PULSE.

“Among them are the conversion to chip debit cards, greater use of tokenization in mobile commerce and continued investment in fraud-mitigation solutions,” he said.

That said, the study also found that fraud is still an issue, with U.S. financial institutions having lost $900 million due to debit card fraud last year.

Mobile wallets in the mix

Mobile wallet enrollment is up, with the number of people enrolling their debit cards into Apple Pay going up 80% last year. While Apple Pay came in first with consumers, the top three mobile wallets also include Android Pay and Samsung Pay. Issuers are also getting on board with mobile wallets, with three out or four banks and issuers letting their cardholders load their debit cards into at the very least one mobile wallet.

Yet even with that, the number of people actually making payments with mobile wallets using their debit cards are rather low, all together Apple Pay, Samsung Pay, and Android Pay make up just one-quarter of 1% of U.S. debit transactions.

Debit cards still growing

Even with mobile wallet usage low, debit card usage is up, with the number of purchases made with debit cards up by 7% in 2016. The study suggests that this upswing was due to the number of debit cards increasing, as well as the number of transactions linked to each card – with the number of transactions up 6% in 2016

“This year’s study confirms that debit remains a core part of the expanding payments landscape, even as new forms of payment emerge,” said Steve Sievert, executive vice president of Marketing and Brand Communications for PULSE.

“The average consumer now uses their debit card 39% more often than they did in 2010, and for more transactions of lower value, indicating that debit is a fundamental financial tool for their everyday lives,” he said.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Gen Z and Millennials Spending More This Holiday Season

Posted: November 23, 2017

Holiday shopping is in full swing, and while spending trends are on target to be on par with last year across the generations, Gen Z and Millennials are feeling more festive, and are on point to spend more this season whether that's on ... Continue reading
Hackers Are Not Dimming Holiday Cheer

Posted: November 22, 2017

Holiday shopping season can be a big draw for criminals, in both stores and online, and while consumers are worried, it's not going to get in their way this season, according to a new study by Discover. They found that 73% of people will ... Continue reading
Small Business Saturday Resonates With Consumers

Posted: November 21, 2017

If you know that November 25 is Small Business Saturday you are in good company because 61% of consumers know it is taking place too, according to the 2017 Small Business Saturday Consumer Insights Survey. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit