Report: Barely 25% of merchants will be EMV compliant

June 26, 2015

WASHINGTON (6/26/15)--Nearly three-quarters of merchants will not be ready for EMV compliance by the Oct. 1 liability shift deadline, according to a report from Javelin Strategy and Research. The report also estimates that merchants that resist EMV will “self-educate” and begin adopting the technology by October 2016.

EMV (Europay, MasterCard, Visa) technology involved the use of chip-enabled payment cards and terminals. Starting Oct. 1, responsibility for losses in point-of-sale transactions will be shifted to the least secure entity, for example, to the a merchant that cannot take EMV cards as opposed to a card issuer with EMV cards.

“The smaller merchants are clearly not ready, not by a longshot," said Nick Holland, Javelin's payments director, in an interview with "The majority of small merchants are not only not ready for EMV, they are not even aware of EMV."

Card security issues are one of CUNA top advocacy priorities, with CUNA pushing for merchants to adopt EMV and other technologies to prevent the data breaches that have been so costly to credit unions.

According to CUNA’s 2015 Credit Card Survey, nearly 60% of credit unions are relying on a rolling reissue process, replacing magnetic strip cards as they expire with EMV cards, while 27% elect for a complete, simultaneous reissue. Only 7% of credit unions have no plans to convert to EMV.