​MasterCard chip and PIN hits 88 percent in US, but merchant support still slim

New data from MasterCard shows that nearly all its cards in the US have chips to enable PIN-based in-store purchases, but the majority of merchants don’t support them.

MasterCard on Monday claimed chip and PIN technology is gaining momentum in the US with 88 percent of US MasterCard credit cards contained a chip as of July, representing a more than two-fold increase since October when retailers rather than banks began to foot the bill for card fraud at the counter if they didn’t support chip and PIN.

However, as elsewhere, EMV adoption in the US hasn’t been quick or smooth. While merchants need to support the technology at terminals, banks also needed to issue cards with chips, and consumers were expected to see the security benefits of switching from a familiar swipe and signature process to inserting a card to a reader and punching in a memorised PIN.

The wide availability of chip-enabled cards suggests part of the challenge has been solved, but according to MasterCard, just 33 percent of retailers, equivalent to two million outlets, now accept chip and PIN cards. Still, this marks a 468 percent increase in supported terminals during the the period.

Major US payment networks including MasterCard, Visa and American Express kicked off “liability shifts” in the US on October 2015 under a plan that was announced in the wake of the massive 2013 payment card breach at US retailer Target.

As with EMV rollouts in Europe and Australia, the US experience hasn’t been smooth or simple. Consumers have struggled to move from signatures to PINs amid complaints that transactions take longer under the PIN system. Also, merchants have pushed back against the liability shift. Retail behemoths Walmart and Home Depot recently filed separate lawsuits against Visa and MasterCard over EMV.

Despite this, MasterCard says that chip and PIN is helping combat fraud. In August, it reported its top five merchants that support EMV had seen a reduction in counterfeit card fraud of 60 percent.

“This country is one of the most complex markets in the world so we know things won’t change overnight,” Craig Vosburg, president of North America for Mastercard, said in a statement on Monday.

“We’re encouraged by the significant progress over the last 11 months. With every additional chip transaction we move closer and closer to our collective goal – moving fraud out of the system.”

Join the CSO newsletter!

Error: Please check your email address.

Tags chip and pinPIN codesmastercardEMVCredit card fraudcontactless paymentscyber security

More about American ExpressHome DepotMastercardVisa

Show Comments

Featured Whitepapers

Editor's Recommendations

Solution Centres

Stories by Liam Tung

Latest Videos

  • 150x50

    CSO Webinar: The Human Factor - Your people are your biggest security weakness

    ​Speakers: David Lacey, Researcher and former CISO Royal Mail David Turner - Global Risk Management Expert Mark Guntrip - Group Manager, Email Protection, Proofpoint

    Play Video

  • 150x50

    CSO Webinar: Current ransomware defences are failing – but machine learning can drive a more proactive solution

    Speakers • Ty Miller, Director, Threat Intelligence • Mark Gregory, Leader, Network Engineering Research Group, RMIT • Jeff Lanza, Retired FBI Agent (USA) • Andy Solterbeck, VP Asia Pacific, Cylance • David Braue, CSO MC/Moderator What to expect: ​Hear from industry experts on the local and global ransomware threat landscape. Explore a new approach to dealing with ransomware using machine-learning techniques and by thinking about the problem in a fundamentally different way. Apply techniques for gathering insight into ransomware behaviour and find out what elements must go into a truly effective ransomware defence. Get a first-hand look at how ransomware actually works in practice, and how machine-learning techniques can pick up on its activities long before your employees do.

    Play Video

  • 150x50

    CSO Webinar: Get real about metadata to avoid a false sense of security

    Speakers: • Anthony Caruana – CSO MC and moderator • Ian Farquhar, Worldwide Virtual Security Team Lead, Gigamon • John Lindsay, Former CTO, iiNet • Skeeve Stevens, Futurist, Future Sumo • David Vaile - Vice chair of APF, Co-Convenor of the Cyberspace Law And Policy Community, UNSW Law Faculty This webinar covers: - A 101 on metadata - what it is and how to use it - Insight into a typical attack, what happens and what we would find when looking into the metadata - How to collect metadata, use this to detect attacks and get greater insight into how you can use this to protect your organisation - Learn how much raw data and metadata to retain and how long for - Get a reality check on how you're using your metadata and if this is enough to secure your organisation

    Play Video

  • 150x50

    CSO Webinar: How banking trojans work and how you can stop them

    CSO Webinar: How banking trojans work and how you can stop them Featuring: • John Baird, Director of Global Technology Production, Deutsche Bank • Samantha Macleod, GM Cyber Security, ME Bank • Sherrod DeGrippo, Director of Emerging Threats, Proofpoint (USA)

    Play Video

  • 150x50

    IDG Live Webinar:The right collaboration strategy will help your business take flight

    Speakers - Mike Harris, Engineering Services Manager, Jetstar - Christopher Johnson, IT Director APAC, 20th Century Fox - Brent Maxwell, Director of Information Systems, THE ICONIC - IDG MC/Moderator Anthony Caruana

    Play Video

More videos

Blog Posts