Limit risk/chargebacks

Fraud impacts all stakeholders. When counterfeit or lost and stolen fraud does occur, a cardholder may lose trust in their card product, in their bank and in the merchant where the fraud occurred; the issuer will typically close the account and may risk losing the cardholder when doing so; and a merchant will lose revenue associated with the fraudulent purchase.

EMV is being implemented in the United States, as it has in other countries, with the goal of reducing card-present fraud. In particular, counterfeit card-present fraud represents a significant percentage of the overall payment card fraud and EMV has been shown to be an effective tool in reducing this fraud, once the number of chip-enabled cards and chip-supporting payment acceptance devices reaches a critical mass.