A majority of US small business owners are unaware of the impending EMV1 liability shift coming in October, according to the latest Wells Fargo/Gallup Small Business Index conducted in mid-July.
In the quarterly small business survey, less than half (49%) of small business owners who accept POS card payments today report being aware of the October 1 liability shift, the date when a card issuer or merchant that does not support EMV chip card technology will assume liability for any fraudulent POS card transactions.
Among business owners who report accepting POS card payments, only 31% say that their existing credit card processing system accepts chip-enabled cards. When asked if they plan to upgrade their POS credit card terminals to accept EMV chip cards, just 29% of business owners said they intend to make the change before the deadline. Another 34% of business owners reported they will at some point in the future after October, and 21% say they never plan to upgrade.
“While our industry has made great progress in the last year informing and preparing small business owners for the EMV liability shift, the survey findings show us that we have more work to do,” said Debra Rossi, head of Wells Fargo Merchant Services. “At Wells Fargo we continue to focus on providing business owners the support they need to get ready – from reaching out to business owners who are directly impacted to offering a wide array of resources that help business owners understand EMV, its benefits and the impact of the upcoming liability shift.”