MasterCard's Adoption to Chip Cards Accelerates, Though Merchants Lag
September 12 2016 - 10:40AM
Dow Jones News
MasterCard Inc. said Monday that 88% of its U.S. consumer credit
cards now have fraud-reducing chips, even as the slower payment
method continues to frustrate users and merchants.
The company said 33% of its U.S. merchants now use chip
terminals, up multifold since last October but still far from being
universal.
The new chip cards, which are typically inserted into
credit-card machines instead of swiped, are meant to reduce credit
card fraud because they prevent cards from being counterfeited.
Since last October, retailers that didn't make the transition to
chip cards are on the hook for counterfeit transactions that used
to be covered by card-issuing banks. Consumers have also complained
that transactions now take longer to go through and they don't know
whether to swipe or insert their cards, as many merchants haven't
fully adopted the new technology.
Craig Vosburg, Mastercard's president of North America, said
things won't change overnight.
"With every additional chip transaction we move closer and
closer to our collective goal—moving fraud out of the system," Mr.
Vosburg said.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 12, 2016 10:25 ET (14:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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