Survey Finds 60% Of US Cardholders Lack EMV Chip-Enabled Cards Ahead Of Oct. 1 Retailer Deadline
According to a CreditCards.com survey, 60% of US cardholders still don’t have cards that are EMV chip-enabled. The phone survey of 2,004 US adults, conducted in September, found consumers largely unfamiliar with the EMV technology. This despite an Oct. 1, 2015 “self-imposed deadline” by card issuers that means “retailers lacking the technology to process payments with chip cards will become liable for fraudulent purchases.” The survey found that of those consumers with EMV chip-enabled cards, 6% have such technology on a debit card, 14% have the technology on a credit card, and 12% have both a debit and credit card with the technology. ACI Worldwide’s Michael Grillo said, “It’s going to be a little clunky and a lot of trial and error,” Grillo says. “Hopefully, it will pick up, the merchants will be able to easily guide the consumers at checkout stands, and consumers will understand why it matters. Change can be a little daunting.” However, EMV Migration Forum director Randy Vanderhoof said banks and merchants alike are “making great progress” in the switch to EMV card support, and that of 1.2 billion US cards in circulation, around “200 million have EMV chips.” He predicted, “In the next few months, we will start to see the results of all of the work that has been put in for the last two years.” Still, Reuters noted that while there is “no firm deadline” for when all consumers must have EMV chip-enabled cards, as of Oct. 1 the burden on fraud liability shifts from credit card issuers to merchants. CreditCards.com senior industry analyst Matt Schultz said of the survey results, “We were expecting a little bigger number, but we also understood that this is going to be a long process.”
What This Means For Small Businesses
Small businesses across the US face a dilemma with the Oct. 1 deadline. Now, if they don’t have card readers that accept EMV chip-enabled technology, and a fraudulent transaction occurs, they will be responsible for any liability from the transaction, rather than the card issuer. At the same time, switching to new payment processing systems is costly, and many small businesses may be forced to make difficult choices when it comes to payment technology.
Additional Reading
USA Today, the Washington Post, The Hill, and NPR also cover the story.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
