SAN FRANCISCO—Another report indicates that many small businesses in America are not prepared to switch to EMV card technology by the October 2015 liability shift deadline.
The survey from Wells Fargo and Gallup asked 600 business owners about plans to upgrade their credit card processing systems, and only 29% said they would do so before the deadline. CUToday.info previously reported similar findings from two separate studies (Report: It’s Not Just FIs That Are Unprepared for Oct. 1 EMV Deadline) (Big Card Issuers Ready For EMV, But Retailers …).
According to the Wells Fargo/Gallup study, for business owners who were not planning to switch before the deadline, a large portion simply did not know about the changes. Thirty-four percent said they would transition at some point in the future but just not before the deadline, while 21% said they would never switch. Sixteen percent of respondents said they were unaware of the chip-enabled systems to come.
The business owners were also asked why they were not planning to upgrade before the deadline. Forty-eight percent said it would not impact their business, and 46% did not want to pay for an EMV terminal. Forty-one percent were not concerned about being held liable for charges, and 36% did not believe that the shift was fair for businesses.
“Adjusting to change is difficult for anyone, especially small business owners with limited budgets. Nevertheless, the Wells Fargo survey revealed just how many businesses are unprepared for the changes to come,” said Bill Hardekopf, CEO of LowCards.com.