With less than a month before the EMV liability shift, many consumers
have neither received new chip-enabled cards nor are generally aware of
NAPLES, Fla.--(BUSINESS WIRE)--
As retailers and banks prepare for the October 1 EMV liability
shift—which moves fraud liability from issuing banks to merchants —many
consumers have not yet received their new chip-enabled cards, or are
simply in the dark about what EMV means, according to a new survey from ACI
Worldwide (NASDAQ: ACIW). The new EMV Readiness Survey of 1,000
adults in the U.S. provides insight into consumers' views on EMV,
and spotlights issues and implications for banks and retailers, ahead of
the busy holiday shopping season.
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Principle findings of this study include:
Of those consumers surveyed who have one or more credit or debit cards:
Nearly three in five (59%) reported that they have not yet
received a new chip-enabled card.
67 percent indicated they have not received information from their
credit card issuer or bank explaining what EMV means and how it
will impact them.
Of those who have already received chip-enabled cards:
Only one third (32%) are aware that the U.S. is moving to EMV—and
the majority do not know the real reason that they received a new
Demographics play a role for those who have received chip-enabled
cards, but awareness does not connote understanding:
Among respondents aged 55-64, 86 percent have heard or seen
information about EMV, compared to 66 percent of 45-54 year olds
and 66 percent of those who are 65+.
Millennials (18-34 year olds) and Gen Xers (35-44 year olds)
reported a high level of EMV awareness (78%).
Geography also plays a role for those who have received chip-enabled
Nearly a quarter (23%) of respondents from the Western U.S.
thought they received new chip-enabled cards because of data
breaches—higher than other U.S. regions—Northeast (17%) Midwest
(10%) and South (7%).
"The survey data validates the trends we have seen over the past year;
with less than a month to go until the EMV liability shift, a staggering
number of consumers are neither educated on nor aware of EMV; they don't
know why they have new chip-enabled cards," said Mike Braatz, senior
vice president, Payments Risk Management, ACI Worldwide. "And 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. 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."
EMV is a global standard for credit and debit payment cards based on
chip card technology, taking its name from the card schemes Europay,
MasterCard, and Visa—the original card associations that developed it.
The standard is now managed by EMVCo, a consortium with control split
equally among Visa, MasterCard, JCB, American Express, China UnionPay,
and Discover. Beginning in October, any purchase made at a terminal
where EMV could be used but is not, the liability for any card-present
counterfeit fraud losses will be put on the party that is responsible
for a non-chip transaction.
Payments (UP) portfolio has EMV
solutions addressing card and smart chip management issuing, transaction
processing and acquiring and payments risk management. For more than 15
years, ACI has played a lead role in the enablement of EMV
around the world.
The ORC International CARAVAN® survey was conducted from August 27-30,
2015, using two probability samples: randomly selected landline
telephone numbers and randomly selected mobile (cell) telephone numbers.
The combined sample consisted of 1,008 adults (18 years old and older)
living in the continental United States. The margin of error for the
total sample of 1,008 was +/- 3.09% at the 95 percent confidence level.
Note that base sizes for age and geography results among those who have
received chip enabled cards may be low.
About ACI Worldwide
ACI Worldwide, the Universal
Payments company, powers electronic payments and banking for more
than 5,600 financial institutions, retailers, billers and processors
around the world. ACI software processes $13 trillion each day in
payments and securities transactions for more than 300 of the leading global
retailers, and 18 of the world's 20 largest banks. Through our
comprehensive suite of software products and hosted services, we deliver
a broad range of solutions for payment processing; card and merchant
banking; mobile, branch and voice banking; fraud
detection; trade finance; and electronic
bill presentment and payment. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2015.
ACI, ACI Payment Systems, the ACI logo and all ACI product names are
trademarks or registered trademarks of ACI Worldwide, Inc., or one of
its subsidiaries, in the United States, other countries or both. Other
parties' trademarks referenced are the property of their respective
Product roadmaps are for informational purposes only and may not be
incorporated into a contract or agreement. The development release and
timing of future product releases remains at ACI's sole discretion. ACI
is providing the following information in accordance with ACI's standard
product communication policies. Any resulting features, functionality,
and enhancements or timing of release of such features, functionality,
and enhancements are at the sole discretion of ACI and may be modified
without notice. All product roadmap or other similar information does
not represent a commitment to deliver any material, code, or
functionality, and should not be relied upon in making a purchasing
View source version on businesswire.com: http://www.businesswire.com/news/home/20150921005091/en/
Dan Ring, 781-370-3600
Source: ACI Worldwide
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