Can We Get a ‘Meh’?

Survey finds that consumers don’t seem to care whether payment terminals are EMV capable.
March 31, 2016

NEW YORK – Forbes writes “there was a lot of hoopla” surrounding the October 1, 2015, EMV liability shift date, where retailers that did not upgrade to EMV-capable payment technology would become liable for any fraudulent purchases that resulted from chip-card transactions.

According to a recent CardHub survey, 42% of retailers have not updated terminals in their stores to make them EMV-compliant—and consumers don’t seem to care, writes Forbes. The publication added that CardHub found “some 56% of people surveyed don’t care if a retailer’s payment terminal is chip-enabled, and 41% of consumers say they don’t have—or don’t know if they have—a chip-enabled credit card.”

Of the retailers CardHub included in its survey, only 60% that said they would complete equipment upgrades by the October 1, 2015, liability shift deadline have finished updating all of their terminals.“We were a little bit surprised by just how slow the uptake is here,” Jill Gonzalez, an analyst at CardHub, told Forbes, adding, “The banks did their part, the financial institutions got their chip-enabled cards out, and the retailers really are taking their time.” She also says that retailers “aren’t feeling the pressure of being responsible for fraudulent activity” because it hasn’t become a financial reality.

However, as Conexxus Executive Director Gray Taylor points out, many retailers haven’t flipped the switch to accept EMV payments “because they can’t, reasonably or unreasonably.” There’s also strong indication from retailers that the October 1, 2017, liability shift for outdoor payment equipment (i.e., dispensers) will be difficult to reach for those same reasons. “What has resulted is retailer abuse—starving innovation, paying premiums for development, putting equipment into the market with the understanding that multiple site-down visits will be required—has never been seen before in any mandate,” he told NACS Daily. “Furthermore, the card companies aren’t calling EMV a mandate, but for retailers who don’t do it, chargebacks will go from a light sprinkle to a massive downpour.”

Forbes writes that installing EMV-compliant terminals is a dual-cost process for retailers. The first cost is upgrading (or in some instances replacing) all of their terminals, and the second cost is terminal activation. For consumers, their “meh” attitude is likely because education about EMV chip cards hasn’t emphasized the security aspect.

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