The beginning of April marked six months since the implementation of the chip and PIN requirement for debit and credit cards, but the rollout doesn’t appear to be going very well.
Last month’s report from CardHub found that about 42 percent of retailers nationwide have not upgraded any of their point-of-sale terminals to EMV compliancy. The survey also did not inquire of those who have upgraded their terminals whether or not those terminals are actually functional.
Additionally, the survey found that 41 percent of respondents don’t know if they have a chip-and-PIN card, and 56 percent don’t care if a retailer has a chip-enabled reader.
Here in the Bay State it’s a mixed bag – some institutions sent out chip-enabled debit cards, but not credit; others, the reverse. Some sent notices about new cards, though not yet the cards themselves, while others have not communicated to customers anything at all about the liability shift.
Even customers of those financial institutions that have rolled out EMV cards are finding very few places where they can actually use them. Forget using chip and PIN at a restaurant or bar – in or outside of the city, we have yet to come across a tableside chip-enabled reader.
A poll of the B&T newsroom finds that a majority of retailers do not have EMV-enabled terminals, and of those who do, about 50 percent are actually operational. Notably, CVS, Star Market, Target and – oddly – an assortment of liquor stores rank among the retailers where if one has a chip and PIN card, one must use it. No mag strips accepted.
But it may not matter – CardHub’s survey finds that 62 percent of respondents don’t understand the differences between the cards, and 41 percent believe a debit card is less vulnerable than a credit card (which is not true).
Clearly consumers are not well educated about the reasons for the switch, why it happened, when it’s going to happen and what to do with the card once they have it. This is a major failing on the parts of their financial institutions.
It is true, however, that it is possible to run a chip card without a PIN, which makes it just as secure as a swipe without a PIN. It’s also true that while chip and PIN may be safer at the point of sale, no upgrade to card technology can protect against online fraud, scammers and hackers – wherein the larger danger lies.
Still, chip and PIN is marginally safer for consumers and retailers alike. That retailers shy from the expense is understandable; that they do not move forward regardless is untenable. For financial institutions to ignore compliance deadlines is unacceptable. And for retailers to undertake the expense of installing terminals that are then unusable is unfathomable.
By Oct. 1 of this year, there should be significant improvement in the number of retailers offering (functional!) chip-enabled readers and the number of consumers educated about, and using, chip cards – both debit and credit. If not, the industry has failed its customers and itself.
