After more than two years since EMV mandates took effect Mastercard reported an 88% increase in chip card adoption by consumers. But are merchants transitioning at the same rate? How many US businesses are actually prepared to accept this influx of chip cards, and how many are still using their old school magnetic swipers?
The October 2015 mandate created new liabilities for merchants not using EMV compliant hardware when accepting credit cards in person. Any merchant using an outdated magnetic swiper is now more liable for fraudulent transactions and charge-backs.
So how many merchants have made the switch? According to EMVCO 2017 Q4 stats, only 41% of card present transactions in the US are processed by way of EMV. This number is up, however, from 18% in 2016. The great news is, merchants who have completed the upgrade have experienced a 70 percent drop in counterfeit dollars over a two-year period.
With the kind of liability involved industry experts have no choice but to wonder why merchants struggle with transitioning to the new standard. A Business News Daily article cites upfront costs and a lack of knowledge as the predominant factors causing slow adoption rates. The article also cites the certification process as another barrier to adoption, noting that merchants are sometimes reluctant to purchase new equipment because they are intimidated by the certification process.
For merchants dragging their feet on making the inevitable jump to EMV, here are a few tips:
Understand Your Risk
Choosing to stick with outdated card swipers is absolutely your prerogative, but by all means make sure you understand your new standard of liability and the impact it could have on your business. The Identity Theft Resource Center keeps an updated list of all data breaches, including small businesses. Looking at these reports may be helpful to understand the context and cost of a data breach.
Looking for a New Payment Provider? We Can Help.
Choose New Technology Wisely
Do adequate research on the options available and look at this new hardware acquisition as a priority to upgrading your business technology. Many new credit card terminals have abilities far beyond accepting payments. Some cutting edge products on the market have the ability to install apps, double as timeclocks and more.
Employees don’t often adapt well to change. Be sure to follow through with the best training possible so employees are comfortable with the new technology. Provide them with troubleshooting tips and access to online videos and training materials.
If your business has not made the switch to EMV, Contact NTC Texas Today! Let us help.