What type(s) of transactions reduce the chance of fraud?

Transactions that utilize chip inserts or tap/contactless technologies significantly reduce the chance of fraud due to their enhanced security features.

Chip inserts, often referred to as EMV (Europay, MasterCard, and Visa) technology, provide a higher level of security compared to magnetic stripe cards. They generate a unique transaction code for each purchase that cannot be reused, which makes it exceedingly difficult for fraudsters to create counterfeit cards or conduct unauthorized transactions using stolen card information.

Similarly, tap/contactless transactions use near-field communication (NFC) technology. This method allows for secure and quick transactions without the need for physical contact between the card and the terminal. Contactless payments also minimize the cardholder’s exposure at the point of sale, further reducing the risk of card skimming or theft.

Both of these technologies contribute to a reduction in fraud cases by implementing measures that ensure transactions are secure and that the cardholder's information is protected. The reliance on secure cryptographic methods and unique transaction identifiers makes it difficult for unauthorized users to exploit or replicate payment data. In contrast, swiping with a magnetic strip does not provide these security enhancements and is more susceptible to fraud.