Small Businesses Unprepared for EMV Compliance
EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them.With the EMV liability shift deadline less than three months away, 52 percent of small businesses will not be EMV-ready, and 37 percent of small businesses have no plans to accept EMV cards after the deadline, according to a survey of 344 small business owners or managers, which was conducted by Cayan. EMV is a technical standard for smart payment cards and for payment terminals and automated teller machines that can accept them. The study surveyed small business that accept credit or debit cards and employ fewer than 50 people. It sought to determine what it would take for small businesses with no EMV plans to become EMV-capable after October 1, the deadline after which merchants will be liable for the cost of counterfeit card fraud if they're unable to accept EMV cards. "The most surprising finding that our study revealed is that many small business owners are taking more of a reactionary approach to upgrading to EMV, even though more than half say they couldn’t bounce back if they were required to cover $500 in fraudulent charges out of pocket," Ben Saren, senior vice president of marketing at Cayan, told eWEEK. "This tells us that SMBs can’t afford not to upgrade to EMV. It’s clear that there are opportunities for companies within the payments industry to educate and prepare small businesses ahead of the October deadline."
The survey revealed that many small businesses aren't yet convinced of the benefits of becoming EMV-ready before the deadline. Yet most respondents admitted that experiencing the negative effects of non-compliances after the deadline would convince them to make the upgrade.