MasterCard reported an impressive 27% year-over-year reduction in counterfeit card fraud at EMV chip-enabled merchants.
That doesn’t mean merchants are seeing the benefits of those reductions. In May, I blogged about the sharp rise in chargebacks that merchants are experiencing due to the liability shift that occurred last October, whereby merchants can be charged back without recourse if they accept a chip-enabled card using the old-fashioned card swipe method instead of a chip reader.
It may be that merchants are actually paying more under the liability shift, even though counterfeit fraud numbers are down. If that’s true, it is just different pockets in the same pair of pants.
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