Survey: More than 70 percent of businesses are not EMV compliant
Last week, we told you how consumers are becoming frustrated with how long it takes those new EMV-compliant debit and credit cards—the ones with the chips embedded in them—to process payments at checkout.
However, despite the fact that the October 1 deadline has come and gone for retailers to install EMV compliant card readers in their stores, even as the holiday season approaches and the risk for credit card fraud is at its highest. Fattmerchant said that 93 percent of the participants in its survey were small business owners.
Further, Fattmerchant found that 36 percent of business owners had no idea what the switch to the EMV-compliant terminals meant.
Let’s catch them up: The new chip-and-pin based debit and credit cards, which have been in circulation in Europe for years, have finally made their way across the pond. The adoption of the tech was perhaps sped up a tad after a series of major credit card fraud scandals at retail giants including Target, Home Depot, Staples, and others. EuroPay, MasterCard, and Visa (EMV), the groups behind the push to get U.S. businesses to adopt the new, allegedly more-secure form of payment, set an October 1, 2015 deadline for businesses to install the EMV compliant payment terminals. Once that date passed, businesses without the new updated terminals will be held financially responsible in the event of a credit card fraud hacking—not the bank.
“Most consumers come prepared for the holidays and know how to keep their wallet safe. It’s time for merchants to realize their risk too,” Suneera Madhani, CEO and founder of Fattmerchant, said in a statement. “With November and December bringing in the largest sales volume of the year, merchants need to know the importance of having EMV-compliant technology to ensure they avoid financial liability from fraudulent credit card charges. They also need to be wary of merchant services providers that are out to take advantage of them by overcharging for EMV-compliant equipment right when they need it most.”