A new survey is showing that most small businesses are not ready for the shift to EMV, and will likely not be able to meet the October 1 deadline.
In its monthly survey of small businesses, Wells Fargo and Gallup are reporting that just 49 percent of small businesses who accept credit cards are aware of the shift to EMV. Of those who are aware, 21 percent have no intention of upgrading.
"While our industry has made great progress in the last year informing and preparing small business owners for the EMV liability shift, the survey findings show us that we have more work to do," said Debra Rossi, head of Wells Fargo Merchant Services, in a press release.
The liability shift that Rossi mentions could have a huge impact on small businesses if their systems are hacked. By the beginning of October, all Americans should have replacement cards with chips embedded into them, or EMV cards. These cards are more secure than magnetic strip cards because the customer information is encrypted, essentially nullifying standard hacking techniques. If merchants can't accept the new cards by the deadline, then they will be held liable for any fraudulent activity on their customer's cards.
There are some good takeaways from the report. Almost a third of small businesses are currently compliant and 63 percent of those who aren't say they will upgrade either by the deadline or shortly thereafter.
With many larger retailers doubling down on security ahead of the deadline, thieves are turning towards small businesses who have yet to upgrade their systems. If you're a small business in need of new credit card processing software, be sure to contact 911 Software today.