"With the deadline for accepting EMV payment cards now just months away" is a false statement....there will be a liability shift, no mandate or deadline...

The point you are trying to make is that the fact that smaller retailers will not be equipped by Oct'15 is a bad thing... some would maintain that it does not really matter.

This is all about stopping counterfeit fraud.... if a cupcake shop has not converted to a chip POS device... does it matter? No counterfeit fraud is be perpetrated at a Cupcake shop.

Of the unconverted small business, how many are service businesses? how many sell merchnadise that is not readily liquid or has resale value? (e.g. cupcakes).

One can rest assured that MOST business that are at risk of having a fraudulent transaction take place at their POS location (e.g. Convenient store that sells gift cards) will have a chip reader before Oct'15 or shortly after having their first large fraud charge back.