Will EMV be able to provide higher Security?

One thing is obvious fraudsters will always follow the shoppers. Card-not-present (CNP) frauds from online purchases were $10 billion in 2014. Such high fraud rates definitely demand a high security system.

But the transition to EMV is perhaps going to worsen the fraud problems as it is obvious for fraudsters to figure out loopholes to exploit the customers.

POS fraud shall decrease now but CNP fraud is likely to increase by more than 100 percent. This has been predicted seeing the rise in fraud levels in United Kingdom after it had transitioned to EMV.

What are retailers looking for?

Retailers are looking for highly secure payment platforms which can help them in maintaining the customers for their . Same is the thing with customers who are tired of the frauds and data breaches. They are also waiting for highly secure systems that can allow them to make fraud free purchases.

Along with EMV, retailers also need to start transitioning to next-generation payments platforms which can provide solutions to curb CNP frauds. Also such systems should be able to work across several channels providing a secure and consistent shopper experience throughout.

But it is rather challenging for retailers to look for such skilled vendors who can provide ideal solutions. Traditional payments promise to provide protection against POS frauds but they are not skilled enough to deal with the virtual market.  

Some new vendors even assure of CNP protection but they lack the expertise and the experience to endorse their claims.

Therefore, retailers need to undergo a deep research before they trust a vendor.

There are few basic questions that a retailer should ask before hiring a vendor.

·         Their methodology to identify fraud- Do they use people, technology or a combination of both?

·         When does the vendor update its data consortium models?

·         Do they offer multiple gateways-SMS, live agent, web, mobile app, text-to-pay, and IVR?

·         How many years has the vendor been providing CNP fraud services?

A vendor who can provide all the above services is obviously in a better position to give its retailer a more efficient platform which is simpler to use.

The EMV transition along with the increasing popularity of online market will make customers more vulnerable to frauds. But retailers should look for measures to stop the frauds and give their customer a pleasant shopping experience.