Survey highlights top obstacles to EMV readiness
Atlanta — A sizeable number of businesses won’t meet the EMV transition deadline, according to a survey by Randstad Technologies.
The survey found that 58% of respondents, who represent a cross-section of affected industries, are actively preparing for the EMV technology transition. But 42% have either taken no steps or are unaware of any progress being made. (By October 1, 2015, the majority of U.S. businesses must transition to EMV-capable technologies or become newly liable for any costs incurred from fraud using old magnetic strip technologies.)
More than half (55%) of respondents think the October 1 liability shift deadline should be delayed. Both lack of time and access to technical deployment expertise were cited as the biggest obstacles to meeting the deadline.
In addition, a majority of respondents indicated little concern for the magnitude of risk associated with missing the liability shift deadline, with 58% stating it will have limited or no impact on their company’s bottom line.
“Because fraud liability has traditionally fallen to credit card companies and banks, consumers have never borne the brunt, and thus aren’t demanding more secure payment technology,” said Dick Mitchell, director Randstad Technologies Solutions. “While businesses understand the importance of more secure payment technology, without this push from consumers, many merchants aren’t feeling the pressure to get all their affairs in order to meet the October deadline.”
Sixty-six percent of IT decision makers, including c-suite executives, believe that the chip and signature solution does not offer credit card holders sufficient security and that Chip and PIN should be required.
“I’m surprised there’s such a disconnect between companies’ seriousness about the EMV transition and their actions to make it happen,” said Mitchell.
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