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BizReport : Ecommerce archives : October 19, 2016

Report: Most SMBs still not EMV ready

It's been a year since the US switch-over to chip-based credit cards, and yet according to new data more than half of small businesses have still not switched their businesses over so that they can handle chip cards.

by Kristina Knight

While chip-based credit cards are touted to be safer for consumers, many businesses are still not accepting these cards. For some small retailers, the basis for not switching over has been costs, but many continue to be unsure about just what the EMV switchover was about and what it means for their business.

"As of October last year, the U.S. officially switched over to EMV chip cards. As a result, businesses are now liable for any consumer fraud costs that result in using counterfeit cards or should a data breach occur. However, our research finds that a year later the majority of small business owners - 61% - still do not have POS systems that accept EMV cards. Of those that don't have EMV chip readers, 64% said it's because they do not process payments from credit or debit cards," said John Swanciger, Manta CEO. "Yet, almost half of small business owners (47%) say they wouldn't be able to withstand the expense of being liable for fraud costs. To eliminate the risk of a breach or fraud treating their business, small business owners should make implementing new, EMV-compatible point of sale systems a priority."

Some interesting takeaways from the Manta poll for more than 800 small businesses include:

• 61% of SMBs surveyed are 'unaware' of the fraud liability shift for EMV credit cards
• 62% still do not accept chip credit cards
• 47% say they 'could not withstand' the expenses/penalties for fraud with EMV technology

Tags: chip credit cards, ecommerce, ecommerce trends, EMV change, Manta, retail trends

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