The Strawhecker Group, a consultant to the payments industry, held a roundtable last week on the Target data breach, the EMV migration and its ramifications.
TSG said that while card data will be safer with EMV at the point-of-sale, the solution will not apply to card not present transactions, which account for eight percent of U.S. card payments.
“Potentially under EMV, fraud will be directed to CNP transactions—and consumers may feel misled by the inevitable continuing data breach stories,” the group said. “It will be important to make sure the public does not see the implementation of EMV as a panacea—because it is not.”
According to TSG, electronic payments fraud costs U.S. companies more than $2 billion. When EMV was introduced in foreign markets, fraud losses were generally higher on a percentage basis, but as more markets continue their migration to EMV, “the U.S. is now the lone standout.”
TSG said that while a government solution is possible, Congress will likely not require the migration to EMV because it “has a lot on its plate today.”
“We do not believe that government can solve this complicated issue with more regulation,” TSG said at the roundtable. “We have confidence in the answer is better working relationships between the brands, bank acquirers and merchants.”
Participants in the roundtable included Kurt Strawhecker, Jamie Savant, Gerritt Kerkstra, Linda Perry, Chuck Fillinger, Cliff Gray and John Kirkpatrick.