Why Credit Card Fraud is Rampant in the US
Filed under: Credit Card Processing
Did you know that the United States is the world leader in credit card fraud? Even though the population of our country only makes up about 5% of the global population, an estimated half of all credit card fraud happens in US transactions. It’s a serious problem that is resulting in billions of dollars in annual loss for stateside merchants.
Why is Credit Card Fraud Such an Issue?
Why is the US a hotspot for credit card fraud? Here are some of the reasons why the United States is a high-risk place when it comes to the security of credit card transactions:
- Late Technology Adoption: EMV (Europay, Mastercard, and Visa) technology improved the safety of credit card transactions, but the US was late to adopt this form of credit card processing. While many other countries mandated the use of EMV early on, it took the US a few more years before these changes were implemented in the industry.
- Consumer Protection Laws: In the United States, consumer protection laws have been put in place, which shifts the burden to the retailer. For example, the chargeback rule allows consumers to request refunds, even if the merchant doesn’t approve the refund. As a result, some customers abuse the system by buying products then intentionally disputing the transaction.
- Card Not Present Transactions: When EMV became more mainstream, thieves turned their attention to online transactions and targeted card-not-present transactions. The United States has one of the most active online retail markets per capita, making it a gold mine for hackers.
- Internet Weaknesses: The increasing use of the internet through computers, tablets, and smartphones means there are many more opportunities for personal information to be stolen. Thieves are always looking for opportunities to steal financial information and personal details. Data breaches are far too common, making it hard to maintain the security of your credit card information.
Not only do consumers need to be cautious in the ways they are using credit cards, but business owners also need to be proactive in implementing the right security features. At Veripay, we offer quality credit card processing services that you can trust. Call us to learn more about the merchant services solutions available for your company: 888-891-0811
