As of July, 88% of Mastercard U.S. consumer credit cards have chips, representing a 105% increase in chip card adoption since the October 1, 2015 liability shift. The company also sees 2 million chip-active merchant locations on its network, a 468% increase in chip terminal adoption since October 1, 2015. Two million merchants represent 33% of all U.S. merchants.
MasterCard reports of the 2 million chip-active merchant locations, 1.3 million are regional and local merchant locations, representing a 159% increase since October 1, 2015.
MasterCard says the biggest benefit of chip technology is minimizing the cost of fraud caused, in part, by the use of counterfeit cards. Now, the chips in terminals “talk” with the chips on cards creating unique codes for all purchases. The unique codes protect cards from being counterfeited.
Mastercard fraud data shows a 54% decrease in counterfeit fraud costs at U.S. retailers who have completed or are close to completing EMV adoption, when comparing April 2016 to April 2015.
Demonstrating the power of EMV and the risk of not adopting it, counterfeit fraud costs increased by 77% year-over-year among large U.S. merchants who have not yet migrated or have just begun the migration to chip.
Chip card use continues to rise in the U.S. according to a recent Mastercard survey of over 1,000 U.S. consumers:
•Nine-in-ten Americans commonly use chip cards, a 38 point increase year-over-year, from 49% in 2015 to 87 percent in 2016.
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