According to a new survey, 42 percent of IT decision makers currently have no plans to switch to technologies that accept EMV.
The report. recently published by Randstad Technologies, shows that many executives aren't supporting the new platform, despite the fast approaching deadline.
The U.S. government set a deadline for the implementation of chip and signature cards in October of this year. The mandate states that all card issuers have to replace existing cards with EMV variants. Also, and perhaps more importantly, after the deadline, merchants who do not have the ability to accept the new cards will be held liable for any loss of customer information, not the card issuer as it is now.
Despite the potential legal damages, the majority of businesses do not think the switch is worth the trouble. According to the survey, 58 percent of companies say that the the potential legal risks "will have limited or no impact on their company's bottom line."
The survey also found that 66 percent of C-suite executives did not think the current implementation of EMV adds enough security. When swiped, current credit cards sent the relevant information, including account number and expiration date, to the processor. EMV will be more secure because this information will be encrypted prior to its transmission. While these executives liked this part of the technology, they had a problem with the authorization.
Elsewhere in the world where EMV is accepted, it uses a chip and PIN system. The cards have PINs, much like debit cards, and require the PIN to be entered as an authorization for every transaction. The U.S. will forgo the PIN in favor of a signature authorization, which the executives say will be less secure.
Many businesses will only need a software upgrade in order to accept EMV. If you are in need of new payment processor software for your business, be sure to contact us today. Take a look at the rest of our website to learn more about the high-quality products that we carry.