< PrevNext > Chip Card & Terminal Migration Precipitate More Changes By JoAnn DeLuna / February 16, 2016 / Contact Reporter Share JoAnn DeLuna, Payment Editor, BTN Since the card networks announced their plans to transition to the EMV standard in 2012, players including issuers, merchants, acquirers and processors have been prepping for the migration that is expected to prevent in-person fraud in the United States.Banks began replacing existing U.S. cards with chip cards long before the liability shift deadline last October, but the Payments Security Task Force industry coalition estimates that we will be well into 2017 before the transition to chip cards is complete.Merchants have been slower to implement new terminals. Last year, Visa estimated that it could take five years before 90 percent of card transactions in the United States are processed using both a chip card and chip-accepting terminal.As the migration plays out in 2016 and beyond, we can expect some unintended consequences:Online Fraud Spikes – Chip cards are great at stopping in-person fraud, but they don’t do much to stop card-not-present fraud, or online fraud. Based on EMV migration in other markets, experts predict online fraud to spike as cyber criminals target the next weakest link.High Demand for Virtual Cards – Travel and card program managers have already latched onto them for increased security and other reconciliation benefits. If online fraud spikes, single-use virtual cards are a smart option. If hackers manage to get their hands on a restricted, tokenized virtual card number, it becomes virtually worthless.Rising Tide for Mobile Pay – EMV terminal upgrades may well advance infrastructure for mobile pay. As merchants upgrade to EMV terminals, why not go all the way with an NFC-enabled model? Doing so will fast-track the infrastructure for mobile pay. Last year some networks enabled mobile pay for corporate cards: American Express corporate cards work with Apple Pay, while MasterCard enabled corporate use for all digital wallets. The International Air Transport Association will introduce its own digital wallet soon. Mobile payment hasn’t gained much traction in the corporate space yet, but as the infrastructure expands this year, watch what happens.