The rise of EMV in the U.S. shifted liability from businesses to banks in instances of fraud. While this helped solve a lot of issues businesses face when running transactions,  the problem continues to grow due to increased eCommerce. Many stores are no longer running face-to-face transactions and are seeing increased problems with fraud again.

Online Ecosystem

As business owners we are looking for protection in the online retail environment. We face the issue of not knowing who is on the other side of the computer. Is the person placing the order who they really say they are? This issue highlights the problem of how the online payment ecosystem is structured. As of right now, business owners take on the responsibility of confirming that the payment they received is actually from the right person. Now, business owners running an online store are at a higher risk of losing a chargeback due to fraud because they were unable to confirm who the person on the other side of the screen is.

The solution

Card brand rules are outdated. It took too long to get EMV here and it shouldn’t take that long to resolve the problem of secure online transactions when the technology exists to solve the issue. Technology such as 2-step authentication, bio-metrics, and facial recognition is the future of secure online transactions. This shift is already beginning to happen, many businesses are sending confirmation codes to enter before confirming a transaction to help reduce online fraud.

Card Brand Competition

Competition encourages change. Right now there aren’t any rules surrounding how fraud is handled in the online environment, putting the responsibility solely on businesses. Amazon has over one million small businesses selling on their platform, with more and more signing up everyday. Businesses feel protected when they sell through Amazon because they see decreased fraud and liability. Business owners don’t have loyalty to card brands, they have loyalty to card holders. What we may begin to see is Amazon offer its own credit card, much like the Target card. This would allow them to extend credit and offer rewards to users who shop on Amazon, making it more appealing for businesses and consumers to utilize the E-retailer.


Payments are changing; in 2015, mobile payments reached over $50 billion across the largest seven european economies. As business owners, we have to watch how the online environment is going to change.

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