Wells Fargo Survey: Many Small Businesses Not Ready for EMV Chip Cards

by Sarah Grotta 0

For those in the payments industry who think about the U.S. EMV migration nearly every day, it is hard to believe that the majority of the country’s small businesses are unaware of the existence of EMV. As a recent survey commissioned by Well Fargo illuminates, even the small businesses who are aware of EMV are generally indifferent to its impact and the looming October liability shift date:

Among business owners who report accepting point-of-sale card payments, only 31 percent say that their existing credit card processing system accepts chip-enabled cards. When asked if they plan to upgrade their point-of-sale credit card terminals to accept EMV chip cards, just 29 percent of business owners said they intend to make the change before the Oct. 1 deadline. Another 34 percent of business owners reported they will at some point in the future after October, and 21 percent say they never plan to upgrade.

From some of the survey’s data, it appears that the respondents are just not impressed with the capabilities of EMV and what it can do for their business:

Forty-eight percent feel that upgrading their payment terminal will not impact their business.
Forty-six percent do not want to pay for the costs associated with upgrading.
Forty-one percent are not concerned about the liability shift in the case of fraud.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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