When it comes to dealing with payment card transactions, fraud remains one of the key concerns for all retailers. Brazil has adapted to this challenge by introducing EMV payments back in 2011, as well as other fraud prevention tools. This same technology is only now rolling out to customers in the US, five years after the facts.
Brazil is Well Ahead of Card Payment Fraud
Depending on which country one lives in, card payments are made through entering a PIN code or having the card swiped. In most countries around the world, swiping has not been used for several years now. But over in the United States, it is still the norm, and that needs to change sooner rather than later. This is why EMV technology was hyped a few months ago in the US, albeit Brazil implemented this technology back in 2011.
Ever since EMV technology has been introduced to the world, payment card fraud numbers have been on the decline. But that doesn’t mean the threat is over yet, as criminals are coming up with new ways to obtain sensitive payment information. Card not present fraud is becoming the new emerging trend, and card issuers are working on solutions for that as well.
Brazil is home to a large e-commerce market, with up to US$40bn in revenue to be generated in 2016. This is helped, in part, due to high card penetration rates, which let residents shop anywhere in the world. But at the same time, there are many different fraud protection solutions in place, creating a secure environment for both retailer and consumer.
Machine learning, artificial intelligence, algorithms, and thorough verification are just some of the tools at the disposal of merchants in Brazil. There are user patterns to identify when it comes to online or physical shopping. Analyzing this information is a key component to reducing payment card fraud.
So far, Brazil has managed to remain on par – or sometimes slightly ahead – of the payment card fraud curve. The United States, on the other hand, are lagging behind by quite a significant margin. Internet criminals continue to target US-based retailers in their fraudulent attempts, and seeing a worrisome rate of success. Both large and small retailers in the US are facing significant fraudulent threats, and remaining vigilant should be the number one priority.
Source: Payments Source
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