Report: 10 Days Left, Merchants Still Not Ready for EMV

Sept. 21, 2015

Report: 10 Days Left, Merchants Still Not Ready for EMV The deadline established by the card networks shifting liability for counterfeit-card fraud from issuers to merchants if they are not equipped to accept EMV transactions in their stores is 10 days away. And, despite that incentive, merchants continue to lag in their preparedness. According to a new study from The Strawhecker Group (TSG), only 27 percent of U.S. merchants will be EMV-ready by the October 1 deadline. TSG expects the number of compliant merchants to rise to 44 percent by December, but does not expect EMV preparedness among merchants to reach 90 percent until 2017. TSG attributes the low number to the complexity of the U.S. payment system, compared with other places in the world that made the switch long ago.

“With low EMV-readiness estimated just [10 days] away from the deadline, it is clear that this process has been far more complicated than in other geographies where it has been implemented before, due to the sheer size and complexity of the payments industry in the U.S.,” said Mike Strawhecker, principal at TSG.

For merchants that accept card-not-present transactions in the U.S., which are expected to experience a significant rise in fraud rates subsequent to the EMV migration, perhaps the onslaught that has been predicted for some time will be delayed, giving them even more time to prepare.