Visa Kicks Off U.S. Chip Card Education for Consumers and Merchants
Visa study finds more than half of consumers and two-thirds of merchants are aware of chip technology; one-third of consumers who are aware of chip’s security benefits cite preference for shopping at chip merchants; four-in-five merchants say chip readers would benefit their businesses
In a recent study conducted by Visa, 52 percent of consumers and 84 percent of small- and medium-sized merchants said they were aware of chip technology and believe it will further enhance the security of their payments. Among consumers, three in five said chip cards are an improvement over magnetic stripe cards and one-third indicated a preference to shop at stores that are equipped with chip technology. Among merchants, 71 percent believe accepting chip technology would benefit their businesses and 39 percent of merchants believe their current card reader is already chip-enabled.
“The adoption of chip technology has the potential to virtually eliminate counterfeit fraud when widely adopted, and will help consumers feel more confident about using their payment cards,” said
Chip is a card-security technology that’s expected to be activated in more than half of U.S. payment cards and large U.S. retailers by the end of next year.1 Whether using a plastic card, mobile phone, tablet or wearable to make a purchase – embedding a chip within the device adds a dynamic, digital code necessary for any transaction to be approved. Chip technology cannot be replicated in counterfeit cards, making the adoption of this technology a critical element in reducing fraud.
Visa’s national campaign entails working with partners in the private and public sectors to educate merchants, policymakers, civic leaders and consumers about Visa chip technology. Through visual and creative content that includes animated demonstrations and videos, the campaign will teach consumers and merchants about the benefits of chip technology and how to use chip cards.
Visa’s efforts will include:
- Educating cardholders when new chip cards are mailed. Visa is providing its more than 10,000 U.S. financial institutions with customizable marketing materials including card mailers, online associate training, deployment toolkits, how-to video and information graphics;
- Educating cardholders at the point of sale (POS) with customizable marketing materials and signage for small- and medium-sized businesses. Visa will also work with many of the largest U.S. merchants to develop additional POS educational opportunities;
- Offering educational resources online with information on the benefits of chip cards and how to use them. Visa’s new microsite, Visachip.com, will feature educational video vignettes and how-to-use demos to help communicate various aspects of this new technology. The company will also support financial institution consumer education activities by promoting digital content through targeted search and display media;
- Working with local chambers of commerce to invite industry-leading experts to participate in educational town hall sessions that include hands-on technology demonstrations in more than 20 markets across the country. Visa will work also with merchant trade groups to educate small- and medium-sized businesses about chip technology;
- Partnering with leading organizations like the
Center for Democracy and Technologyand BloombergGovernment to educate policy and business leaders on this important technology migration.
“We are fortunate in that we can benefit from the experience of other countries that have adopted chip technology. What they have shared with us is that the more education we provide, the more expedient and seamless the transition,” stressed Richey.
Consumer Research Highlights
Visa’s research highlighted consumer desire for further chip education. The study found that although 52 percent of consumers are aware of chip cards, many indicated a desire to learn more about how to use the cards (70 percent). Other consumer data points include:
- More than half of consumers who are aware of chip cards cite security as a key benefit;
- Among cardholders who know that “chip technology” is a security enhancement, 73 percent said chip cards are an improvement over magnetic stripe cards;
- A third of cardholders who are aware of the security benefits of chip said they would be more willing to shop at a store that was equipped to accept chip cards, and 55 percent feel their personal and financial information is more secure when shopping at a chip-accepting store;
- Thirty-three percent of cardholders say they have enough information to use a chip card at chip-accepting stores if provided one today from their bank or issuer.
Merchant Research Highlights
More than 77 percent of small- and medium-sized merchant respondents said they are aware of chip technology and that the transition to chip cards will benefit their customers, and the majority said that having more information would help them feel more confident in making the switch. Other merchant data points include:
- 71 percent of merchants said they are aware of chip technology and believe it will benefit their business;
- 39 percent of merchants believe their current card terminal is chip-enabled;
- 45 percent of merchants were aware of the
October 2015counterfeit fraud liability shift;
- 66 percent of merchants reported either already having chip-enabled card readers or upgrading to chip readers by
- When it comes to having sufficient information to feel confident in making the switch to chip card readers, 45 percent of merchants not yet chip-enabled feel they have enough information; 55 percent said they would like more.
Chip is but one of several smart technologies Visa is leading the industry to adopt that will further strengthen the security of payments. In September, Visa announced a new service that will secure consumer payments on new
Editor’s Note about Research Methodology: Visa commissioned a telephone survey of 1,000 major credit or debit cardholders nationally in the U.S.