Debit Fraud Loss Rates Decline After Chip Cards Introduced
According to the 2017 Debit Issuer Study, commissioned by PULSE, U.S. financial institutions substantially increased issuance of chip debit cards in 2016 and experienced reduced fraud losses. Since the fraud liability shift for most debit transactions took effect in 2015, an estimated 80 percent of U.S. debit cards have been converted to chip cards. The study also found that fraud loss rates dropped by approximately 28 percent in 2016 compared to 2015 levels.
The 12th annual Debit Issuer Study also confirmed that fraud continues to challenge issuers. U.S. financial institutions lost an estimated $900 million to debit card fraud in 2016.