42% of Companies Have No Chip-and-PIN Transition Plan

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As most know, the majority of US businesses must transition to EMV-capable technologies for credit cards by Oct. 1, or become liable for any costs incurred from fraud using old magnetic-strip technologies. As the transition deadline looms, research shows that 42% of IT decision makers, including C-level executives, have either taken no steps or are unaware of any progress being made to meet the mandate.

According to a survey on EMV readiness from Randstad Technologies, lack of time and lack of technology deployment expertise were cited as the biggest obstacles to meeting the two-month-away deadline. Also, a majority of respondents indicated little concern for the magnitude of risk associated with missing the liability shift deadline, with 58% stating it will have limited or no impact on their company’s bottom line.

The report also found that only 66% of IT decision makers, including C-suite executives, believe that chip and signature offers credit-card holders insufficient security, and that chip and PIN should be required.

“I’m surprised there’s such a disconnect between companies’ seriousness about the EMV transition and their actions to make it happen,” said Dick Mitchell, Randstad Technologies solutions director. “I’m even more surprised that there is anyone—let alone 28% of respondents—who believe chip and signature is more secure than the technically superior chip and PIN.”

The survey also found that 55% of respondents think the October 1 liability shift deadline should be delayed.

“Because fraud liability has traditionally fallen to credit-card companies and banks, consumers have never borne the brunt, and thus aren’t demanding more secure payment technology,” Mitchell said. “While businesses understand the importance of more secure payment technology, without this push from consumers, many merchants aren’t feeling the pressure to get all their affairs in order to meet the October deadline.”

The results do show that 58% of respondents are actively preparing for the EMV technology transition, representing a cross-section of affected industries.

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