Why were chip readers slow to be turned on?

Customers all across the nation have walked into a merchant and when they went to pay with their credit card found that while an EMV chip reader was present the customer was forced to use the magnetic strip. The reader may just be one of the merchants that has done this. Many customers have wondered just what the point of the EMV transition is if merchants are not going to use it, especially since most customers have the chips on their cards?

There are reasons why the chip reader does not work or more accurately has not been turned on. Most of it has to do with speed as it has been quicker to swipe the card rather than dip it and when the line is seemingly getting bigger and bigger it is in a merchant’s best interest to keep it moving. Updates have increased the speed of the transaction with an EMV chip but it is still slower, but not by much anymore and this is becoming a less valid reason as customers get used to the process as well.

This also blends in with another common reason found early on. Small businesses were often the ones that did not turn on the EMV portion, particularly in small towns. This is not as much of a problem now but when the liability shift occurred they did not activate them as they did not want to be the ones teaching the people how to use their new EMV cards. Not only would this slow down the line dramatically the odds of the customer remembering may not have been good which would require the same thing the next time they came in. At the time it was better to let someone else do that and slow down their checkout.

There are much more involved reasons as well. Merchants need to undergo a certification process from each of the card networks when the EMV POS terminal is installed. At the time of the liability shift the list for the certification was extremely long and it took a long time to work through it. Some merchants still have not received their certification though as it can be a time-consuming process, so it may not be the merchant’s fault but this number is greatly reduced as time has gone on.

It could be though. New software is required for the POS terminal and the merchant may have simply not loaded it yet. If this is you, why are you waiting? The transition has had most of the issues ironed out and by working with a knowledgeable processor like JLE Business Consultants it can go much more smoothly. We can also help you with upgrades, technical support and staff training too.

For anyone out there that has not upgraded to a EMV POS terminal what are you waiting for? The liability shift was three years ago and you are playing with fire at this point, especially with another holiday season around the corner. Don’t get burned for fraudulent transactions, it’s time to upgrade. JLE Business Consultants can help you with that so stop leaving your business vulnerable.