VISA’s general manager for the Caribbean Sofia Antor is reporting a significant decline in fraud associated with VISA credit cards since the introduction of chip and PIN cards.
Antor did not provide figures but credit card fraud was reported to fall by as much as 65 per cent in the first decade after the technology was introduce in Europe.
In the United States, which introduced the card last year, nearly 600 million people are expected to be updated
to chip and PIN by the end of 2015, according to Smart Card Alliance estimates.
The card uses a technology known as EMV, named for Europay, MasterCard, and Visa, the three companies which originally created the standard.
Speaking last evening at the official launch of Republic Bank (Barbados) Ltd’s chip and PIN card at the Clubhouse, Royal Westmoreland, Antor gave the assurance that the payment technology company would continue to do what it could to protect customers from credit card fraud.
“Regarding prevention, we minimize fraud in the payment system by building policies, tools, technologies and strategies that help stop fraud before it occurs.
“In terms of protection we protect vulnerable card data whether it is a store process or transmitted throughout
the payment system. We also monitor and manage fraudto ensure we effectively address the issues and minimize impact to account holders, merchants and financial institutions,” Antor said.
She said VISA had invested heavily in advanced fraud fighting technologies, and the company continued to develop and deploy innovative programmes to mitigate fraud and protect cardholders, keeping fraud rate “near historic lows” over the years.
“The technological innovation and advancements in risk management fraud rates have declined by more than
two-thirds in the past two decades,” she pointed out, adding that the company used “multiple layers of security”
to protect cardholders.
Antor said in countries where the chip technology was being used widely “counterfeit fraud has declined significantly”. As of March 2014 there were more thanone billion VISA chip cards issued.
Noting that the Asian, European and Latin American markets were at the forefront of migration to chip cards, Antor said of the more than 240 million VISA chip cards in Latin America alone, approximately 64 per cent contained multiple application that range from multiple paymentsof credit and debit integrated in one card to coupons and loyalty programmes, among others.
“The chip card migration is advancing quickly in the Caribbean region. There is a 14 per cent chip card penetration in this region and a domestic acceptance level of about eight per cent,” she added. (MM)