Survey: More than Half of US Small Businesses Are Not yet EMV Ready

It has been a month since the EMV liability shift kicked off in the US, but more than half of small businesses have not yet adopted EMV chip-enabled payment terminals, says a new study by TD Bank, one of the 10 biggest banks in the country.

Conducted from October 1 to 7, 2015, the TD Bank Small Business Survey polled over 500 small businesses that accept debit or credit payments via payment terminals.

The study delved into small businesses’ adoption of EMV payment technology, their perceptions on its benefits and its challenges.

According to the study, 41 percent of small business owners (SBOs) have adopted EMV chip-enabled payment terminals, while 40 percent have plans to upgrade to EMV in spite of some concerns on the conversion process.

The study also found that 10 percent of respondents have no plans of transitioning to EMV, while 9 percent remains in the dark about the liability shift.

Fifty-eight percent of SBOs who are yet to upgrade to EMV cited the cost associated with EMV migration as one of their biggest concerns, the study found.

SBOS who have adopted the technology spent $450 on the average, contrary to reports before the liability shift that the cost could reach about $1,000.

When asked about the greatest benefit of EMV adoption, respondents pointed to the liability relief that compliance brings to small businesses.

The survey also found that 73 percent of SBOs are not very concerned on vulnerability to fraud.

On the other hand, 70 percent of those who have already complied to EMV cited added security as its top advantage, saying the technology better protects customers’ information and businesses from liability to fraud.

Julie Pukas, Head of U.S. Bankcard and Merchant Services, TD Bank, commented, “Businesses of all sizes need to think about the potential long-term effects of not installing the more secure EMV system. One fraudulent transaction could be costly, and implementing EMV payment technology acts like an insurance policy for businesses if they have this unfortunate experience.”