News & Trends

Chip-and-PIN: The Payments Change One Year Later

It's been a year since the big shift happened: the change from magnetic stripe-only cards to chip-and-PIN technology, heralded as a major step forward in fighting payment card fraud.

It was this month last year that the big deadline passed: businesses needed to update their payment card processing terminals to a newly-compliant system that would see shoppers dipping versus swiping their payment cards. The cards themselves would also be reissued, now with embedded chips to read and generate unique per-transaction codes to fight replicative fraud efforts once captured more simply by cards featuring a magnetic stripe alone.

So, how have those big efforts come off? In working to compel retailers to make the switch to the new terminals, those are probably something you've noticed while grocery shopping these days. However, the terminals may be present, but some retailers still haven't configured their internal systems to read cards through the new dip method, means you're still swiping away. With some retailers still slow to move over fully to the new system, is it any wonder that fraud incidents have climbed this year?

According to recent information, e-commerce fates of fraud attack have risen at least 15 percent over 2015 totals. This rising trend suggests that fraudsters continue to exploit new vulnerabilities- like card-not-present fraud, where information is captured through other means, and identity theft has already occurred.

For more of the latest findings on fraud (do you live in a ZIP Code that's a hotspot of fraud activity?) from Experian, click here to discover more.


This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

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