Businesses Slow To Adopt New Chip-Enabled Card Readers Despite October Liability Shift
PYMNTS partnered with Sage Capital to create a Small Business Technology Adoption Index “to measure if and how” small and mid-sized businesses “are embracing technology to expedite payments and manage money flows to stay abreast with the latest industry trends.” The Index was compiled through a survey of 700 small and medium-sized businesses. According to the survey, “EMV can wait,” PYMNTS found. “Only 28 percent” of small and medium-sized businesses “have deployed EMV capabilities in time for the liability shift and a stunning 64 percent who haven’t said they ‘probably won’t,’” the survey found.
The survey also found “a whopping 61 percent of the enterprises surveyed said that they don’t have an issue with their current systems and processes, while 44 percent said that they adopt any new technology with a lot of caution.” This suggests that loyalty to current payment-processing systems is strong among these business owners. In a press release announcing the survey results, Sage Payment Solutions CEO Paul Bridgewater explained, “Small and medium businesses want a flexible, integrated, end-to-end system for managing the movement of money – that is, seamlessly getting paid, making payments, and managing cash flow – and vendors who can provide these types of solutions have a distinct opportunity.” However, small and mid-sized businesses appear to be embracing electronic invoicing more readily, with “31 percent of SMBs use electronic invoicing.”
What This Means For Small Businesses
As of Oct. 1, small businesses became liable for fraud on purchases made with cards that don’t have EMV technology, shifting responsibility from card providers to merchants. The longer small businesses wait to adopt new payment technologies, the greater the risk they could face liability from fraudulent transactions.
NFIB provides background on the recent transition to EMV cards.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.