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Some Credit Unions Say No To EMV Chips / Cost Of Target Breach

Friday, July 4, 2014 - 9:57 AM
From Credit Union Times:

Fully 17% of credit unions surveyed for a new report on the U.S. debit industry told researchers they do not plan to issue debit cards with an embedded EMV chip. This means these credit unions risk taking all the liability for card fraud from their non-EMV enabled cards after the industry goes through its planned October 2015 liability shift.

[...] The study also put cost numbers to the Target breach, at least on a per transaction basis. Fraud in 2013, including the Target breach,  took roughly 2 cents of the interchange of every big bank signature debit transaction and about a half-cent from the interchange drawn from each PIN authenticated transaction, according to the study.

It took 2.6 cents of the interchange from each community bank signature debit transaction and about 1/10 of a cent from each PIN debit transaction.

By comparison, it took 2.5 cents of the interchange from each credit union signature debit transaction and about one-tenth of a cent from the interchange from each PIN debit transaction.

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