The next time you look at the chip on your debit or credit card, consider this: We will soon mark the three-year anniversary of the EMV liability shift for point-of-sale transactions in the U.S. The U.S. was the last major market to switch to EMV, a technology that has transformed the payment process for retail organizations; financial Read More
EMV has been a much-discussed payments topic in recent years. And when the EMV liability shift occurred in 2015, millions of mag-stripe debit and credit cards were traded in for chip-enabled cards. The goal: to prevent consumer data theft and tighten security at point-of-sale terminals. Despite some slow rollouts of EMV-capable retail terminals, the shift to more Read More
It’s been a little more than a year since payment-card fraud liability shifted from card issuers to retailers—and in that time, the majority of EMV news has focused on the growing pains of transition. That includes the slow certification processes, low retailer adoption, the absence of PIN verification and exaggerated consumer complaints about point-of-sale inconvenience. But issuers Read More
In 2010, the federal government passed the Durbin amendment (named for U.S. Senator Dick Durbin, D-Ill.), which essentially caps debit interchange fees. It not only limits the profitability of debit card programs but also causes many issuers to cut back or eliminate rewards programs in their debit portfolios. Fast forward to 2016, and credit card portfolios now face Read More
Card fraud is one of the fastest growing crimes impacting financial institutions. A 2016 LexisNexis report found that issuers directly lose $10.9 billion per year in card fraud, with an average loss of $5.90 per compromised card.With the threat mounting, a bank’s first impulse is often to build additional barriers to mitigate the risks of card fraud. Read More
Influencing a customer’s decision to choose a specific credit card for any given transaction from her wallet can be challenging for card issuers. In the typical lifecycle of managing a bankcard customer, driving activation and usage is one of the most critical aspects of engagement.This is indeed a challenge for issuers, because consumers have many options available Read More
Last year, as the Federal Reserve was preparing for its long-anticipated first monetary tightening in nearly a decade, the conversation began to focus on the generation of bankers whose concept of “normal” consisted of short-term interest rates near zero percent and holding steady. So, now that the suspense is over and we have “lift-off” in the Fed Read More
The October 1 deadline came and went for merchants to accept new chips cards – also known as EMV cards – and the payments world remains much the same. Of the eight million U.S. merchants that accept debit and credit cards, only about 300,000, or less than 4%, are equipped to take chip cards today. Most small Read More
In the wake of recent well-publicized data breaches, the financial services industry is looking at tokenization as a means of improving the security around payments. In a previous article for BAI Banking Strategies, we looked at tokenization from the standpoint of managing token directories. Now it’s time to tackle the issue of sorting through the different approaches Read More
This October represents a key deadline for financial institutions across the country. It marks the transition to EMV, or chip-based technology for payment cards, also known as the “fraud liability shift” set by Visa, MasterCard, American Express and Discover. Essentially, any party that hasn’t implemented EMV may be liable for the fraud that results from a magnetic-stripe Read More
