Lack of EMV Awareness Persists Among Small & Mid-Market Merchants

Navigator Edition: April 2014
By: Marc Abbey and Scott DeHaven

In recently completed First Annapolis research, the strong majority of merchants were unaware of EMV and unprepared for the 2015 migration and liability shift.  In April, First Annapolis surveyed 200 merchants.  Over 85% of the respondents were senior managers and more than half were finance, accounting, or operations managers.  The respondents came from a diverse set of industries, though restaurants and retail were the most prevalent, accounting for approximately 28% of the respondents.  The companies in the survey skewed to a larger than average merchant size, with 40% of the merchants at organizations with $100 million or more in revenue.

Figure 1: Percentage of Small & Mid-Market Merchants with EMV Capable POS Hardware and Software

Fig-1_-Percentage-of-Merchants-w-EMV-Capable-POS-Hardware-and-SoftwareSource: First Annapolis Consulting Merchant Survey (April, 2014).

Only 24% of the merchants indicated that they were aware of the upcoming requirements for US merchants to be able to accept chip cards, with 28% indicating they had heard of the requirements but did not know the details and nearly half indicating no awareness of EMV.  Likewise, 80% of the merchants indicated that their POS equipment was either not EMV capable or that they did not know if it was EMV capable.  Over 60% of the merchants had either not decided to upgrade their POS for EMV or had decided against such an upgrade.

Clearly, it is early days for the US EMV migration and, among all the other migration activities, the industry continues to face a significant educational challenge in the merchant market.

For more information, please contact Marc Abbey, Partner, or Scott DeHaven, Consultant, Both specialize in Merchant Acquiring.

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