Benefits of EMV to Issuers and Merchants

Issuers are generally liable for card fraud related to face-to-face transactions and therefore benefit from the reduction of direct fraud cost in this channel. One of the most understated aspects of the migration to chip, however, is the productivity increase on the merchant and acquiring side of the equation. Significant savings result from replacing signed paper slips by electronic records simplifying the handling of fraud, in particular the retrieval of payments records while dealing with chargeback requests. Likewise, the checkout process at the POS, cash handling in general and the cashier’s after-hours balancing procedures are streamlined and shortened.

When CNP fraud is included in the equation, the picture gets even more attractive for the merchants. Merchants are liable for CNP fraud unless they are participating in strong authentication programs based on 3DSecure technology. These programs can be enhanced by the dynamic data features of EMV which also helps to dramatically reduce maintenance and continuous auditing cost for PCI DSS on the merchant side (for more details see section 3.7).

 

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