EMV Compliance: Is Your Business Still at Risk?

Dan Brames
FIS | Head of Retail and Corporate Payments
Posted on July 21, 2016


Managing payment card fraud can be challenging for financial institutions. As the October 2015 EMV Liability Shift deadline approaches, many still see EMV™ as a holistic answer to the fraud attacks plaguing many retail companies. Far from a panacea to all instances of fraud, however, it’s important to remember that EMV is but one part of the fraud prevention puzzle. Issuers need to equip themselves with a multipronged fraud prevention strategy in order to protect their bottom line and keep their cardholders secure.

While issuers must continue to be proactive and stay ahead of other types of fraud, it is imperative to have a EMV chip migration plan and card reissuance strategy project in place right now, even if EMV isn’t the silver bullet.

So what should issuers look out for in the fight to keep their cardholder’s transactions secure?

What are the obstacles in the way of EMV Chip Card Compliance

Counterfeit fraud at the point-of-sale (POS) accounts for 37% of all U.S. credit card fraud, according to Aite Group. The rollout of chip cards in the United States will help to reduce this percentage; however, financial institutions should already be ramping up for the liability shift deadline and have incorporated EMV chip migration expense into their budgets.

At FIS, we have been stressing that it’s not as simple as just re-issuing chip-enabled cards; cardholders need to be educated on what EMV chip cards are, why they need are useful and how they work. Meanwhile, cardholders and financial institution personnel need education to understand the additional security and protection, and what new processes will become the norm. Failure to provide such education could result in the loss of consumers to other card issuers.

Fraud in EMV Technology

One thing that must be communicated is that POS chip acceptance will not end fraud. As seen in other areas of the world where chip cards already are standard, fraudsters shift focus to card-not-present (CNP) transactions instead. In fact, Aite Group predicts card-not-present fraud losses will grow to $6.4 billion in the United States by the end of 2018.

As fraud patterns quickly morph, financial institutions should consult with firms that offer a well-rounded, complete fraud management strategy, along with nimble technology that can address all aspects of card fraud. Such investments will provide access real-time data, and insights that can lead to more effective risk management and less instances of fraud and losses.

EMV Mandate

FIS considers fraud protection and mitigation an essential part of EMV card migration. This way, your financial institution raises its level of protection across the board and works to prevent fraud to its customers no matter how they use your cards.

In the face of ever-evolving threats, we’ve put fraud protection tools and solutions in place to enhance your fraud awareness and provide timely alerts. These help financial institutions quickly and efficiently target, monitor, evaluate cardholder risk and facilitate selective account blocking. The goal is to provide financial institutions a partnership that protects them and keeps their customer’s personal financial information safe.

Protecting your customers and your financial institution from fraudulent activity on their EMV card is always a priority; however, it has been especially heightened in 2015. As new payment technologies are emerging to protect your customer’s personal financial information, take advantage of the opportunities presented and find a way to make them work for you.


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Dan Brames
FIS | Head of Retail and Corporate Payments

Dan brings over 20 years of financial and payments industry experience to FIS through senior marketing and management roles. Most recently, he was a management team member at Valutec which was acquired by Metavante in 2007 and FIS in 2009.