More EMV Concerns Emerge

Experts question slower transaction time and supply chain issues for EMV cards.

June 08, 2015

DENVER, Colo. – CPI card group, which produces credit cards for a majority of issuers, has been swamped with orders for new cards equipped with EMV chip technology and is struggling to keep up with demand.

"We are working 24-7," Docia Myer of CPI Card Group told Tampa-based news station WTSP.

As retailers count down to the October EMV liability shift deadline, they’re certainly not alone in feeling concern leading up to the big change. "It is without a doubt the biggest change in the way we pay for things this country has ever seen," said Steven Casco, CEO of CardNotPresent.com, during a meeting last month with leading e-commerce and cybersecurity experts.

One major concern of retailers is whether the EMV-enabled payment process, in which a customer “dips” their card into the reader and waits as opposed to the typical “swipe,” will take longer and impact business flow at the register. According to CPI Group’s Myer, who cited retailer studies, there is in fact a bit of longer delay with EMV cards.

However, those seconds can add up – particularly at busy shopping times like Black Friday, which will be only weeks after the October transition. Only time and real-world experience will tell.

Another concern expressed by experts is the threat of another major card data breach occurring during the period where issuers are switching from magnetic stripe cards to chip cards. As CPI can attest, they are already stretched to their limit producing the new EMV cards in their pipeline. If another breach necessitates the production of even more replacement cards, U.S.-based suppliers might not be able to meet the need for new cards, causing potential problems for consumers.

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