EMV Chip Cards to be in effect by October 1st
Financial services company The Strawhecker Group released details about EMV readiness in September, showing that only 27 percent of U.S. merchants will be ready by the Oct. 1 deadline. By December, 44 percent are expected to adopt EMV — which stands for Europay, MasterCard and Visa — and hit 90 percent by 2017. Florida has more than 2 million small businesses, according to the U.S. Small Business Administration, and many of those companies may fall into the 73 percent that will not be ready.
Many businesses are not yet ready to accept EMV chip cards, but many consumers don't have the cards either.
A report in August from TD Bank said one in five small businesses in Florida will be at risk following the Oct. 1 deadline. As financial companies move away from magnetic strip payment process cards and adapt to EMV chip technology, the liability of fraudulent charges will be shifted to businesses that may not be prepared to accept the method.
The EMV chip card is a system that is said to crackdown on fraudulent charges — a cyber security issue that has caused big problems for companies such as Target, Home Depot and Michaels. For a business to accept the cards, it would need a new compatible payment terminal, which sells for an average of $500 plus the cost of installation and training.