Why Retailers Aren’t Using EMV

EMV chip credit cards were implemented in the United States a few years ago. Still, many merchants are not using EMV despite the security concerns from only using magnetic strips. EMV technology is supposed to make consumer transactions go quicker and be more secure. This in turn limits liability for merchants and protects the bank accounts and identities of consumers. There are around 5 million EMV-ready terminals at U.S. stores, but only 1 million have implemented the process. So why hasn’t EMV caught on with many U.S. merchants?

The problem can be traced back to the beginning of EMV law adaptation. There was an initial delay from EMV adaptation due to a bottleneck; specifically there were severe hardware and software shortages and a lack of knowledge about these technologies. Secondly, getting the terminal to accept EMV cards requires integration of new software from third parties. After this relationship is established, the new terminals and the merchant must complete a certification program with each of the major card networks. Not only is this process long, but currently the certification line is long and many small merchants don’t want to invest time in the process.

In addition to a frustrating certification, Federal lawsdemand competition in debit card processing so merchants have a variety of networks to choose from. But writing software for EMV debit cards is a complex and tedious process, as a result, software is often late to arrive. Plus competition from mobile payment like Apple Pay or Samsung Pay has also slowed EMV implementation. As these options become more popular and user-friendly, many merchants are foregoing EMV chip integration for mobile payment options. Despitethese challenges, The EMV Migration Forum predicts that 90 percent of U.S. terminals will still be EMV chipped by the end of 2017.

Even though, EMV chip cards have proven to be a more secure method of making purchases than magnetic strips, adaptation of the chip has been slow in the U.S. Still it is coming and is a must in the new era of consumer payment processing. Make sure that your business is ready to process EMV chip cards and open an eMerchantBroker.com merchant account. EMB is the payment processor with a nationally recognized staff and systems to get your merchant account set up and running within 48 hours.