How much is EMV Costing the U.S.?
Guess! Okay I'll tell you, but before I do lets go over some of the details:
Billions of credit cards have to be re-issued, 10 million POS cardreaders have to be replaced and we're still a little over two years away from MasterCard's liability shift deadline. Experts say it will cost the United States upwards of $35 billion! It's obvious that the train is moving and there is no stopping it but recently the push to get this transition over and done with has become more aggressive since the infamous Target breach over the holidays.
France first switched over to smartcard technology back in 1992, now in 2013 americans are urging their government, retailers and banks to make the switch as quickly as possible. Following recent information breaches, Target alone has pledged to have all of their terminals switched over to smartcard readers by the end of the year, while also issuing out "red cards" for their customers with an embedded chip.
So why the late transition? Up until just a few years ago it wasn't seen as a necessity. We rolled with the punches and did what we could to get by, despite the fact that that an estimated $8.6 billion is lost each year to some form of fraud. Countries like France and Columbia have seen massive improvements since adopting EMV (up to 98% decreases). However it took the U.S. much longer to realize how necessary the transition is. To put it plainley, we waited for the worst to happen, and it's costing us money.
We'll never know if we could have saved money had the transition been earlier in the millennium. Either way, we'll be saving billions of people from fraud, so the cost is justified.