Status Report: One Month into EMV

It’s been just over a month since the October 2015 liability shift, which has resulted in a number of changes at the checkout counter and a new system for determining who’s accountable in case of fraud. For business that updated their payment terminals in advance of the deadline and credit card brands that rolled out chip cards nationwide, EMV’s arrival is a welcome change.
However, many businesses still aren’t EMV-compliant. According to an International Business Times report, only 27 percent of businesses were EMV-compliant on Oct. 1 and only 44 percent are expected to be prepared by the end of the year. It’s also worth noting that nearly 60 percent of consumers have yet to receive replacement credit cards enabled with chip technology.
While EMV still has a long way to go, there have been a number of changes since Oct. 1. Here’s what’s going on one month after the deadline:

There’s a New Sense of Urgency to Upgrade

Retailers are no longer under pressure to upgrade terminals in order to meet the Oct. 1 deadline, however; there’s a new sense of urgency now that the liability shift has passed. With the holiday shopping season right around the corner, businesses can expect a major increase in traffic, which means an increased risk of fraud. If a business reports fraudulent activity and it was unable to accept chip cards at the time, that business may be held financially responsible.
Credit card brands are also under pressure to distribute chip cards as quickly as possible in order to protect customers from scams and avoid liability in the case of fraud. Just days after the liability shift, scammers began targeting consumers who haven’t received a chip card yet. The incident illustrates a vulnerability created by lackluster distribution rates and uninformed customers, which credit card brands will need to address quickly.

There’s Been Some Resistance to Change

There are a number of reasons why some businesses haven’t their technology. Myths and misconceptions about the cost of upgrading and who is impacted by the liability shift are often to blame for slow adoption rates. However, a lack of information on the liability shift isn’t the only thing holding back widespread EMV-compliance. Since the Oct. 1 deadline, retailers have lobbied that EMV terminals cost too much and the process isn’t as secure as promised. Additionally, some small businesses have openly stated that they don’t plan to upgrade.

Transitioning to EMV Payments Takes Time

For businesses that are already EMV-compliant, the transition to EMV payments has required effort beyond simply upgrading technology. Retailers are working to seamless integrate the new payment method into their checkout counter routine. That means training employees on how to instruct customers throughout the transaction process and how to answer any questions that pop up along the way. Many businesses have also begun to prepare for the future of contactless EMV payments.
We’re one month into EMV! What has your business done since the deadline? Tell us in the comment section below or send us a tweet @Cayan and let us know!
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