69% of Small Businesses Not Ready for Chip-and-PIN Transition
A new study about the transition to chip-and-PIN credit cards reveals 69% of small and mid-sized businesses do not think they will be able to meet the October 2015 deadline for switching to EMV terminals. These EMV terminals are required to operate chip-and-PIN cards, and 26% of these businesses don’t even know what they are.
The transition to EMV technology is coming, regardless of whether small businesses are prepared for it. Nevertheless, these statistics indicate the shift may be longer and more difficult than initially expected. Only 11% of these businesses already have EMV terminals, and 25% are unaware of the upcoming deadline.
To make matters worse, American cardholders may have a difficult time learning how to use their new cards. 82% of consumers in the United States have never made a purchase with a chip-and-PIN card. 19% of survey respondents said they had a chip-and-PIN card, but 7% said they have not used it yet.
Americans hold 25% of the world’s credit cards, but they are victims of 50% of the world’s credit card theft. This is mainly due to the antiquated technology in magnetic strip credit cards. The cards are vulnerable to hacking, skimming and other forms of theft, which is why the country is making the switch to EMV cards. It may take a while to accomplish but the change is necessary for the protection of consumers.