Here are the main issues that have arose due to EMV technology

1. The Main Complaints of EMV
Technology

2. • Throughout the past several months, EMV® has slowly
begun to emerge in the checkout lanes at retailers.
• According to Visa CEO, Charles W. Scharf, over 750,000
locations that represent 17 percent of brick and mortar
card accepting merchants currently are enabled to
process chip-based EMV transactions.

3. • Although several retailers have already installed EMV-
capable terminals, many do not allow chip transactions
and are still requesting customers to swipe their card
instead of dipping their chip card.
• Why are so many EMV-capable terminals that are already
installed at merchants not currently enabled to accept
chip cards?

4. • With the EMV mandate now in effect, all retailers must
make the merge to EMV-capable solutions or risk costly
penalties in an instance of fraud.
• Despite the fact that merchants are now fully responsible
for a fraudulent charge, many are taking their chances
and have decided to take a wait-and-see approach with
enabling their EMV terminals.
Why the Delay?

5. • Larger merchants especially do not want to have to go
through the lengthy process of training customers how to use
their chip cards at their upgraded terminals.
• On a similar note, switching to EMV-capable terminals is a
large and expensive project that even larger merchants do not
want to hassle with.
Why the Delay?

6. • “They see [chip cards] as just slowing down lines and
chose to wait until consumers learned what to do – and
do it quickly – at someone else’s store,” said Allen
Weinberg, co-founder of Glenbrook Partners consulting
firm.
• “Even if the software was ahead of the game, they faced
long certification queues at many acquirers,” Weinberg
wrote. “I believe this is going to be a problem for a
while.”
Why the Delay?

7. • Visa anticipates 50 percent of face-to-face card
accepting merchants to have enabled their chip card
transactions by the end of 2016.
• However, even a 50 percent adoption rate can cover up a
long list of small business merchants who also are
delaying implementation as long as possible due to the
expense of integrating upgraded EMV terminals.
Why the Delay?

8. • Terry Crowley, CEO of TranSend, predicts many small
businesses could be hit with a plethora of chargebacks
from dishonest consumers who will abuse the liability
shift with merchants who still do not have enabled EMV
terminals.
Increase of Chargebacks?

9. • “There’s an invisible hand at work that is about to kick
everyone in the pants and accelerate U.S. dipping into
EMV slots,” Crowley said.
• “If you use a chip card at a point of sale that says swipe
— and you later say that wasn’t me –there’s very little a
merchant can do to dispute that charge. It’s going to
happen because what people aren’t thinking about is the
friendly fraud. When people are made aware that if I
swipe and I have a chip card, that lunch can be free if I’m
a bad consumer.”
Increase of Chargebacks?

10. • The primary complaint over EMV for both merchants and
consumers is how long it takes to process a chip card
transaction, at around 10-15 extra seconds, compared to
swiping a card.
• A chip card transaction requires the consumer to keep
their card inserted into the terminal until the transaction
is approved.
Convenience over Security?

11. • “We Americans care more about convenience than we
do about security,” said Weinberg. “In the end,
consumers hold their banks accountable for this stuff,
because they’re the ones having to reissue the cards
each time there’s another breach.”
Convenience over Security?

12. • As a whole, EMV technology outweighs the negative
outcome of a fraudulent situation.
• Delayed merchants need to begin integrating EMV-
compatible solutions and start enabling their terminals
for the protection of their business.
• Consumers should come to terms that although an EMV
transaction may take slightly longer, the enhanced
security chip cards offer minimalizes the potential
negative impact of their card becoming compromised.

13. Did you miss the EMV liability shift date?
Contact First American Payment Systems and get started with EMV
today!