By the time you finish reading this sentence, two more Americans will have fallen prey to credit card fraud.
That’s right: according to recent research, $16 billion was stolen from 12.7 million U.S. consumers in 2014, equating to one new fraud victim every two seconds. Because of the prevalence of fraud, EMV chip cards have been introduced in the United States as a safer payment option.
These new EMV cards, whose chips are designed to prevent thieves from duplicating cards, are steadily rolling out to consumers from major financial institutions. The transition to EMV-compliant payment terminals on the merchant side, however, has been far more gradual. Although EMV card readers are required by credit card companies under contract, small and mid-sized businesses have been slow to upgrade their systems. In fact, in October, 2015 it was estimated that only 40% of U.S. small businesses have made the transition to the new EMV-friendly point of sale (POS) terminals.
In order to better understand the EMV rollout and its effect on small and mid-sized businesses, it’s important to consider three key factors.
Kevin Beasley is CIO of VAI.