Retailers lagging on EMV card technology transition, reveals study
Despite a deadline of October 2015, 42 percent of retailers have yet to update payment terminals to be EMV compliant.
What’s even more startling is that 43 percent of retailers which suffered some sort of data breach in the past five years have not made the technology transition, according to a new Cardhub study, which notes there are $8 billion fraudulent card purchases each year in the U.S.
Financial institutions, notes Cardhub research analyst Alina Comoreanu, have been the most active and progressive in moving to EMV, replacing the traditional magnetic striped card security technology with a card housing a computer chip.
“The retailer response, however, has been shockingly muted by comparison,” notes Comoreanu.
The Cardhub study polled 55 major retailers and 1,000 consumers regarding EMV compliance efforts. According to the Cardhub study some major retailers have taken the EMV compliance route. Walmart, Target, Home Depot, Walgreens and CVS Caremark were 100 percent compliant as of this month. Kroger and Lowes are at 93 percent in achieving compliance. While Costco completed an upgrade in 2015 just 13 percent of its stores are compliance as of this month.
On the consumer side 56 percent of card users polled don’t care if a retailer’s payment terminal is chip-enabled, 4 percent stated they will not shop at a retailer that hasn’t upgraded card terminal security and 41 percent don’t have, credit cards housing a smart chip.
The EMV compliance issue is just one of several mobile payment challenges facing retailers today. Payment security is a top focus given increasing data breaches and the fact that retailers re now responsible for fraudulent card activity – a financial risk that previously fell on card issuers. Given the tight margins most retailers wrangle with, the opportunity to prevent additional costs is invaluable.
That’s a prime reason why mobile payment challenges are the focus of a session at the upcoming three-day ICX Summit, taking place June 1 to June 3 in Dallas. The panel discussion will focus on how retailers can provide customers with options on ordering and payment while improving security, efficiency, speed and user experience. Click here to find out more about the ICX Summit and mobile payment session.
Topics: CONNECT: The Mobile CX Summit, Customer Experience, Customer Service, Data Security, eCommerce, Financial News, Mobile Payments, Mobile Retail, Online Retailing, Payments, Point-of-Purchase / POP, POS, Retail - General, Self-Checkout, Technology