Point of Sale System - Research Paper Example

Running head: trends in The Use of Point of Sale System in the US and Other Parts of The World. Point of Sale System. College SubjectDate With the ever growing phenomenon of globalization as well as advancement in technology the modern world requires a more convenient payment system that can be used anywhere in the world without having to travel around with cash. As such plastic money has become very popular as one just needs to travel with their cash loaded card. The use of plastic money and point of sale systems has tremendously increased across the world in hotels, airlines, retail shops, financial institutions and online retailing as it removes the hustle of currency exchange as well as carrying around cash.

The United States and other countries which have a lot of international activities thus receive many visitors from the world over have the highest number of sale transactions. As a result of the increased usage of point of sale system in almost every retail store, fraudsters have come up with technologies to skim customer cards, produce replica cards and defraud users of their money. This has forced major car producing and regulating companies Visa and MasterCard to move from magnetic strip cards to EM which is more secure as it requires the use of a pin code and has a chip.

Compared to other countries such as the Netherlands, Canada, Australia, the UK and other parts of the world card fraud in USA has been significantly low. But as this other markets migrate to EMV their fraud rates have seen tremendous reduction while the United States’ have been going upwards due delays in migration from magnetic strip. The American card market heavily relies on the magnetic strip cards and this could behind the rising fraud rates; fraud has risen by 70% since the year 2004 with 2010 representing the first year in time when fraud rates on cards issued in the United States was higher compared to cards issued in the UK (King, 2012).

In conclusion therefore the use of point of sale systems has become popular the America and the whole world. Fraud has evolved and targeted plastic money necessitating the change of technology to EMV. The United States has been slow in moving to EMV due to high presence of signature verification cards and mag strips. Migrating from magnetic strip cards will therefore be a huge milestone in curbing card counterfeiting in USA.References.1. Douglas King. (2012). Chip-and PIN: Success and Challenges in Reducing Fraud.

Retail Payments Forum.2. Jeffrey Green. (2006). 2006 Bankcard Profitability Study & Annual Report.3. Kate Fitzgerald. (2010). Amex Sets Date for Canada EMV Liability. American Banker.