Sid Singh, President, OpenEdge shares his views on the current status of EMV for Business Solutions Magazine…
After much ado, last October, the payments industry adapted an EMV liability shift in the United States. That event didn’t herald a law or a mandate. Rather, it was a change in who the parties within the payment chain consider “responsible” if a data breach occurs — namely, whichever party did not implement the highest degree of fraud-prevention security when it was available.
Over a year has passed since the EMV liability shift. Some would argue that much of the ado was about nothing. Others maintain that EMV adoption has represented a significant disruption. The truth likely resides somewhere in the middle. Whatever the answer, EMV is on the scene, cardholders are growing accustomed to it and the card-present merchant environment is a safer place.
EMV isn’t ubiquitous wherever a consumer produces a credit card yet, but it’s getting there. Here’s a snapshot of the state of EMV adoption…
The rollout of EMV has been slower than most experts anticipated. Many merchants took a wait and see attitude, delaying costly, time-consuming hardware and software updates until they knew for sure that consumers were interested in EMV. This was particularly true in low-risk segments where credit card fraud is rarer — the medical field or membership models, for instance. As a result, the new technology’s market entry has taken on the attributes of a marathon rather than a sprint. However, now that early adapters and Big Box retailers have EMV readers and are processing secure transactions, we can expect the pace of EMV implementation to accelerate.
Log Jams Are Clearing
Many merchants were unable to implement EMV even though they were ready. The payments industry wasn’t altogether prepared for the U.S. adaptation of EMV and the October liability deadline. This resulted in a backlog for processors and for the suppliers of terminals. Today, much of this backlog has eased.
"However, now that early adapters and Big Box retailers have EMV readers and are processing secure transactions, we can expect the pace of EMV implementation to accelerate."- Sid Singh, President, OpenEdge
The Waiting Is The Hardest Part
Waiting for a transaction to process during checkout has been a frequent complaint about EMV. Mobile and contactless payment options are enjoying an increase in use, as processing time is marginally faster than the chip and dip.
Prior to the liability shift, certain types of disputes were never seen by merchants because they were the card issuer’s responsibility. Now that the party with the least secure technology is liable, many businesses are seeing these disputes on chargeback statements for the first time. As a result, merchants as a whole are experiencing an uptick in chargebacks.
Presently, there are 600 million EMV chip cards in the United States. Industry surveys from The Strawhecker Group suggest that about 37 percent of merchants are prepared to accept EMV cards (far short of projections). However, with operational backlogs clearing and more cardholders receiving the new plastic, analysts predict that over 70 percent of merchants will be EMV-enabled by year’s end.
EMV deployment in the U.S. isn’t over yet, and there might still be some surprises on the horizon. But now that the preliminary roadblocks have been cleared, there are strong indications that this next stage for payments security will proceed and become — at least for now — the “new normal.”Original article can be found here: http://www.bsminfo.com/doc/emv-in-the-almost-new-normal-0001?immediate=true