Retailers and banks might be racing to meet the Oct. 1 EMV liability shift deadline, but most consumers are not ready for the shift, just yet.
With less than a month left before the liability shift kicks in, six out of 10 consumers reported to have either not received their chip-enabled card or are in the dark about the use and purpose of their new card, according to an ACI Worldwide survey, which sampled over 1,000 U.S consumers.
The survey results reflect how slowly banks are wading into issuing EMV cards, with 59 percent of respondents with one or more credit or debit cards reporting that they have still not received a chip-enabled card, according to a press release.
A lack of outreach to educate consumers came across with 67 percent consumers with multiple credit and debit cards reporting not getting any information from their bank about the use and purpose of the new card.
"If consumers are unaware, the implications for retailers come October and throughout the holiday shopping season could be major, especially as retailers prepare for this new payment experience,” said Mike Braatz, senior vice president of payments risk management at ACI Worldwide. “Although October is the date for the liability shift, we know issuers, acquirers and retailers are still working on issuing cards and upgrading payment acceptance systems to address EMV."
Furthermore, one-third of those who had already received a chip-based card said they were not aware of the “real reason” for receiving a new card.
A better understanding of EMV and the use of chip-based cards was noted among millennials and Gen Xers — 78 percent of whom reported to have knowledge on the subject. Consumers aged 65+ showed the least awareness, with just 66 percent reporting to understand EMV.
And while it is apparent that a big consumer pool has yet to get their first chip-based card, it is not the case with the affluent consumer base. Fifty-five percent of households with a $100,000+ income reported to have received the chip-enabled cards.
While the EMV technology finds it roots way back in the 90s, the U.S is the last, and apparently the slowest, entrant to the EMV party.Another survey by Software Advice revealed that SMBs are lagging way behind in adopting the chip-based technology, with just 22 percent reporting to be EMV ready for the deadline