Nearly a year after the EMV liability shift in the U.S.—a move specifically engineered to incent retailers to install EMV-compliant POS systems in their stores—only 44 percent of merchants are equipped with the new terminals, according to a new report from The Strawhecker Group. Further, not all of those merchants that have installed EMV-enabled systems are using them. Only 29 percent of U.S. merchants can actually accept chip cards, the report said, with terminal certification delays the main culprit.
Despite fewer U.S. merchants accepting chip transactions a year into the transition to EMV than predicted, however, the effects experts predicted have largely come true. Studies over the past few months have consistently shown that counterfeit fraud at the physical point of sale is dropping, while card-not-present fraud is surging.
Another area that has surged is chargebacks. The survey found more than 60 percent of respondents have experienced an increase in the number of chargebacks due to a lack of EMV compliance.
“It is clear that non-EMV compliant merchants have felt the impact of the liability shift,” said Jared Drieling, business intelligence manager at TSG. “The good news is that as merchants refresh their terminals for EMV, they are also adopting the contactless capability which lays down the foundation for future payments such as mobile proximity payments.”