EMV, a supposedly more secure method of payment has been receiving much criticism in the past months and isn’t exactly being accepted with open arms.
A recent survey conducted by Gfk Public Affairs shows that the major shift from mag-stripe to EMV has much farther lengths to go before the Oct. 2015 deadline. The survey shed light on possible reasons why this shift will take longer than expected. According to Finextra only about 10 percent of all people surveyed have received a chip-enabled debit or credit card from their bank.
However, it seems as though it is not just the consumers that aren’t exactly prepared for October. According to the latest Wells Fargo/Gallup Small Business survey just about half of SMB owners weren’t even aware that there would be a liability shift coming Oct. 1. Also, out of the small businesses surveyed only 31 percent of businesses that accept credit cards had a payment processing device capable of accepting the chip cards. With a little less of half of business owners blaming the hesitation to switch on the high cost of upgrading, it’s become highly competitive for merchant services to get businesses upgraded at a low cost to the merchant.
It seems as though a shift in liability for the merchant would be enough reason to make the switch. Avoiding liability for fraudulent charges when someone uses a counterfeit card seems like a safe measure that businesses would want to take. After last year the U.S. was held home to $3.89 billion in losses due to counterfeiting, but even that substantial loss isn’t enough reason for the 21 percent of SMB owners that never plan to switch to EMV.
It’s almost an even split whether or not the American population actually believes EMV will actually reduce fraud. However, it is a common concern for a majority of Americans to have high or extreme concern for their personal information when shopping in store and online.
Whether your business is up-to-date with EMV chip readers already, or you plan to upgrade in the future EMV will be the future of all credit card processing. One will probably not see the widespread use and acceptance of EMV cards by the expected date, Oct. 1. It is clear that people have their doubts about the change in the way cards a processed and some are simply just not informed. The best thing you can do for your business is get informed and find out when the best time to switch to more secure processing is.
Feel free to make the switch today with Host Merchant Services. As always we offer free equipment including the latest in EMV card readers so you can provide the safest in credit card processing for your customers.