According to research from The Nilson Report, a payments industry publication, US credit and debit card issuers, acquirers and merchants already bore the brunt of nearly half (48.2%) of the USD 16.31 billion in losses due to all forms of payment fraud globally in 2014, despite accounting for only 21.4% of global purchase volume on payment cards. That is because much of the rest of the world has already phased in chip cards, following what’s called the EMV (short for EuroPay, MasterCard, Visa) card standard. The US is the last large nation to make the shift to EMV.
Findings indicate that the use of counterfeit cards cost US issuers, acquirers and merchants USD 3.9 billion in 2014, accounting for 23.9% of total global fraud losses. With the October 1 deadline for chip cards in the US around the corner, Nilson Report expects some of that fraud activity to move online.
The Nilson Report also estimates that 25% of total global fraud losses in 2014 (roughly USD 4.08 billion) was due to card-not-present fraud losses. Card-not-present fraud also rose in the Asia-Pacific region due to the growth of e-commerce sales there. Asia-Pacific web sales grew 37% from 2013 to 2014, according to Internet Retailer estimates, the highest growth rate of any region.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now