Earlier this year we talked about the new EMV chip card technology along with the looming deadline of October 2015 when fraud liability will shift. Follow this link to read our post for more details about how the liability shift could affect you. EMV stands for Europay, MasterCard and Visa, a global standard for inter-operation of integrated circuit or chip cards with IC card capable point of sale terminals and automated teller machines that authenticate credit and debit card transactions. It’s crunch time for the U.S. because we are among the last countries to adopt this technology.
We shared a graphic on worldwide EMV implementation back in the spring. In spite of the October deadline, the U.S. is still lagging behind on implementation. Take a look at these stats from this CreditCards.com article on EMV that they posted recently:
575 million: Number of EMV cards to be issued by the end of 2015
59%: Percentage of retail locations that will be EMV-compliant by the end of 2015.
78,800: Current number of EMV chip-activated merchant locations
40%: Percentage of US. debit cards that will be issued as EMV cards by the end of 2015
70%: Percentage of U.S. credit cards that will be issued as EMV cards by the end of 2015
86%: Percentage of financial institutions that plan on issuing EMV debit cards in the next two years
$3.50: Average cost for issuing a new EMV card
$500: Average cost of an EMV-compliant point-of-sale terminal
Sources: Javelin Research & Strategy, Aite Group, 2014 PULSE Debit Issuer Survey
Impending Big Bang?
So when October 2015 rolls around in just three months will the banking world crumble? Not so, say the American Bankers Association risk management folks:
“Don’t expect a big bang in October of 2015,” says Doug Johnson, vice president of risk management policy for the American Bankers Association. “In terms of rollout, we expect about 50 percent of banks and retailers to be completely transitioned over. It’s going to take a little time to adapt.”
Aite Group estimates that by the end of 2015, approximately 70 percent of credit cards and 40 percent of debit cards in the U.S. –1.1 billion cards total — will support EMV.
But when it comes to the liability shift issue, we recommend that you get a new terminal by the October 2015 deadline. It will give you one less thing to worry about in your business. And what business owner wouldn’t want one less thing to worry about? Call us today to get started.