You may not know this, but the U.S. possibly has the most complex point of sale (POS) debit payment system on the planet. You can trace this back to its origins as an ATM card acceptance process, supported by multiple ATM networks. These grew into what we know as today’s POS networks. With support from major card brands, the concept of “signature debit” transactions is processed through credit networks.
2015 was an interesting year in the U.S. payments industry. Counterfeit credit cards were on the rise and every business that accepted payments was panicking about something called the “EMV migration.” ISVs that provided payment acceptance solutions to their customers were also in the same boat and were trying to figure out what the next step is for them. It has been over three years since and it brings up the question we all have in mind – is EMV helping? A recent report from Visa provided insights into the efficacy of the migration in the U.S.:
In 2015, the U.S. became the last developed country to move to EMV in an effort to combat the rampant credit/debit card counterfeit fraud. It has been three years since the EMV migration kicked in and a lot has changed since then. Recently, Visa released new data along with an infographic highlighting the progress of the EMV migration. Although we used Visa’s published infographic for this blog, we expect proportionally similar results were seen across all U.S. card brands. After reviewing the results, here where I feel we stand:
Payment acceptance for the longest time was thought to be a necessary business expense. But over the last decade, a few significant changes have transformed the definition of “payments” in the industry. One of the changes that acted as a catalyst in this transformation is the improved efficiency in carrying out electronic transactions. Combined with the advancement in technology over the last two decades, innovative solutions have become easily available in the market for all merchants (big or small) looking to improve efficiency and enhance their customers’ experience.
Credit card signatures are going away. You may have seen many articles delivering this news, and might wonder if it matters to you as a merchant. Ultimately, the decision on whether or not to accept signatures is up to you, so it’s important to understand the benefits of each option. In this article, I provide some insight into how and why credit card signatures are being phased out. Let’s start with the basics.
