Only 42% of small businesses in the U.S. plan to make the switch over to EMV in compliance with the October deadline. That’s the headline from a new survey from Intuit which highlights the especially heavy burden that the EMV switch is imposing on small businesses:
“Nearly 60% of those surveyed cited the cost of a new terminal or reader as the top reason keeping them from upgrading, while 85% who aren’t making the switch are unaware of the financial and legal liabilities they will be responsible for starting in October.”
These results indicate an urgent need for the networks to provide small businesses with additional education on the upcoming liability shift (and its potential consequences for noncompliance). It also indicates an opportunity for merchant acquirers and ISOs that are able to provide a lower cost solution for merchants’ reterminalization efforts (as Intuit, Square, and others are attempting to do).
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
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