whit wrote:companies don't want to move to EMV
they're forced to because if they don't do it before end of 2015 (article says October?)
then the liability shifts to them rather then the merchants
Sort of. Right now, the credit card companies are the ones that eat fraud. They build it into their business model. Don't worry; they're not hurting. As of October, 2015, if a merchant
doesn't process transactions with EMV, the liability shifts from the credit card company to the merchant.
Credit card companies are resisting because an EMV chip increases the cost of a blank credit card from about Â¢15 to between $2-4. There are approximately 546 million
credit card accounts in the US. So, the EMV upgrade costs US banks $1.13-2.26 billion right now.
Theoretically, they'll save more than that because EMV reduces fraud. Worldwide, there was about $11 billion in fraud in 2012. The US account for almost half of that. All of Europe accounts for about a quarter. If we simply reduce fraud to European levels, it covers the cost of EMV implementation for banks
. Retailers have costs too. I'm not sure how they work out.
whit wrote:typical American behavior and belief..if it ain't don't broke don't mend it..spend more on solving problems then preventative because there's more
$$$ that way and hey, we integrated the amount of cost this could potentially cost us if we leave it unfixed--versus what it would cost to take measures to prevent/fix and even with the damages we still come ahead so
Sort of, but not really. Yes, Americans believe that things shouldn't be fixed if they're not broken. But, we also have an amazing ability to completely fail at recognizing broken things. The credit card system has been broken for a long time. Any system that allows fraud to double
over the last decade isn't working. Other example: Infrastructure
whit wrote:but now the cost is going to hurt them
but guess how they're gonna pass off these costs
I'll give u one hint
it ain't them
It's never them. Privatize profits and socialize losses.
(Wow. That turned into a rant. Sorry.)
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