United States - Credit Card Fraud is about to increase
If you’ve been following this blog for more than a week or so, you’ve read about some of the problems with Chip and PIN cards. First, they are an improvement of sorts but they are
not as secure as the credit card industry wants us to believe. But the bigger issue is that they are designed for Card Present transactions and in the UK they have
created a huge increase in overseas fraud - an estimated 50% increase and there have been estimates as high as 77%.
For the past year or so, the credit card industry has been quietly test marketing Chip and PIN technology in select areas of Canada. Those tests, as expected, have been a success and Canada expects to be fully Chip and PIN by 2010. Guess where the most convenient “overseas” location will be for the fraudsters. Think it might be their neighbors to the South?
Here in the States there are no plans to roll out Chip and PIN, not now, not ever. We’re sitting ducks for the bad guys. E-Commerce merchants, brace yourselves. You’re going to get hammered.
If you’re not totally confident about your fraud screening, now would be a good time to educate yourself by taking a look at Preventing E-Commerce Chargebacks or engaging the services of good fraud screening companies like preCharge, Cardinal Commerce, or one of the others recommended by Merchant911.
It won’t cost you to look them over and they could save you bundle of money in chargeback fees and lost product.
