In just a few months after the official deadline for the shift from the traditional magnetic stripe to EMV technology and the shifting of the liability, roughly 37 percent of USA merchant stores adjusted to the technology. Following this, different surveys estimated that most of business and consumer will have adopted the EMV technology by the mid this year (2016). However, this seems not to be the trend. Despite the industrial-wide effort to pressurize the shifting to the EMV chip-card through liability shift, some business seems not to get the message. The liability shift meant that the merchant liability to the fraudulent transaction was shifted to the credit card issuers and bank since the bank can take extra precaution before a transaction is processed. It is of great benefit that all the merchants in the U.S. understand the consequences and the risk of delaying the EMV migration. Since October 1, 2015, credit card accepting merchants may be held financially answerable for fraud transactions if it is proved that they committed some error while processing the transactions with the chip cards.
There is still a significant number of merchants and consumers who have not adjusted to the EMV chip-card technology.
Why the low percentage of EMV adoption in U.S.
There are a couple of answers behind the low adjustment rate to the EMV technology. One of the reason relates to financial issues. The U.S.A has had a long history of credit card processing and had been the leader in credit card technology for a long time. This reveals that a lot of money was poured into the states’ credit card processing infrastructure and the issuing process. Therefore, return on investment on current technology trumped an immediate move to EMV. Merchants who had just bargained for magnetic swipe technology some months before the Oct 1st must be finding it difficult to adjust to the EMV technology. But it is much beneficial, if you, the business owner, evaluate the advantages of the EMV in combating crime and liability shift rather than valuing the swipe technology.
Another reason for the low adjustment rate relates to cultural issues. Most U.S. cardholders are used to the swipe. It is a quick transaction; completed by just swipe and sign. The EMV transactions take a bit longer. The merchants are hence reluctant to shift since this will force consumers to change their payment practices and this might also slow the efficiencies during check out. But to be on the safe side if you are a merchant you should understand the quick swipe technology increase the chances of fraudulent transactions since there is no time for bank verification of the legitimacy of the card.