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More than a few retailers playing catch-up in EMV card compliance

While the big retailers are compliant with the EMV credit card chip mandate hitting today, many retailers are playing catch-up, a new study reveals.

October 1, 2015

Today marks the official shift in EMV liability and while the big retailers are compliant, many smaller retailers are playing catch up, according to a new study from The Strawhecker Group.

In the retail segment, 69 percent of shoe stores and 59 percent of department stores have EMV-ready terminals in place, as do 23 percent of stationery stores and 24 percent of book stores.

"It makes sense that certain retail merchant types are more ready than others for the liability shift, as some are much more likely to potentially see fraudulent transactions," said Mike Strawhecker, principal at TSG, in an announcement. "While many retailers have not yet upgraded their terminals, big-box merchants such as Wal-Mart and Target are ready for Oct. 1."

EMV (which stands for Europay, MasterCard and Visa) is, as of Oct. 1, the accepted card standard, featuring an embedded microchip that provides unique data protection when the card is inserted into a chip card reader. A majority of card-accepting U.S. merchants may now be liable for fraudulent transactions if they are not EMV-compliant.

The study features a chart of 30 retail merchant types and their EMV-readiness.

"Unprepared merchants may be in for a rude awakening as they realize they are now liable for fraudulent transactions that occur at the point of sale," said TSG Business Intelligence Manager Jared Drieling. "Many merchants — especially those that are more prone to counterfeit and lost and stolen card fraud — will be scrambling after the liability shift for the next 12 to 18 months to upgrade terminal equipment and software."