42% of IT Decision Makers Aren’t Moving on EMV Transition
Many businesses are not prepared for the upcoming October 1st deadline for processing chip-embedded credit cards, according to a new survey from Randstad Technologies. A large portion of IT decision makers–those involved with deciding the technological state of a company–still have not made plans to change their card processing infrastructures.
The survey was designed to assess just how prepared American businesses are for the changes happening in October. At that time, businesses that do not have the ability to process chip-embedded cards will be held liable for all fraudulent charges that take place. Currently, credit card providers and processing companies are the ones held liable for unauthorized transactions, which protects business owners from potentially huge financial burdens.
Randstad Technologies found 66% of IT decision makers, including “C-suite executives” (Chief Executive Officer, Chief Financial Officer, Chief Operating Officer), do not believe that Chip and Signature cards provide enough security, and that PINs should be mandatory for card transactions. The survey also revealed 42% of decision makers have no plans for switching to EMV technology at this time.
A majority of respondents indicated little concern for the magnitude of risk associated with missing the liability shift deadline. In fact, 58% of businesses said the liability risks to come after the deadline “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, Randstad Technologies Solutions Director. “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.”