It is estimated that Banks and merchants lost an estimated $16.3 billion last year globally on fraudulent transactions, with America the biggest problem spot. The US accounts for nearly half of the global losses, despite generating only 21% of global transaction volume. Next week liability for fraudulent in-person transactions made with counterfeit or stolen cards switches from the card issuer to the merchant.
The upgrade is not inexpensive. The hardware that merchants need to accept E.M.V. cards generally costs $100 to $600 a terminal, and software upgrades and other necessary add-ons can easily raise the price for even a small shop to four or five figures. Advertisement Continue reading the main story In addition, employees and customers have to be trained to use the unfamiliar, and slower, technology. Tom England, the co-owner of Dancing Bear, a toy store in Frederick, Md., that added the new technology a few months ago, estimates that reading a chip card takes five to 10 seconds longer than reading the familiar magnetic strip. “It adds up quickly when you have customers waiting in line,” he said.