In 2016, the use of stolen card data to pay for merchandise on websites, in mobile apps and by dialling call centres surged 40%, forcing merchants to spend billions on online fraud protection in an effort to detect when a thief is using someone else’s card number. As a result, ecommerce merchants and financial institutions will spend USD 9.2 billion annually in fraud-detection solutions by 2020, up 30% from current levels, according to Juniper Research.
Furthermore, almost 1.81 million US merchants had switched to accepting European-style chip cards, more than double the number the year before, according to Visa. Issued by banks, cards containing the so-called EMV technology are much harder to counterfeit, which cuts down on in-person fraud at stores.
To bolster its arsenal, Visa acquired CardinalCommerce to help merchants and banks authenticate ecommerce transactions.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now