EMV Credit Cards Interview with Compass Media Networks
CreditCards.com Senior Industry Analyst Matt Schulz spoke on Tuesday, September29, 2015 with Gordon Deal of Compass Media Networks about the September 2015 EMV Credit Cards survey. The interview and transcript are below.
Gordon Deal: Tomorrow is the date the banks had set for the full roll-out of chip-enabled credit cards. But a new survey finds that more than 60% of us still don’t have them. Chip cards should reduce fraud in stores that are able to process them, but does not reduce fraud when it comes to online shopping. More on the delay from Matt Schulz, Senior Analyst from CreditCards.com. Matt, what’s up here?
Matt Schulz: More than six out of 10 American credit cardholders still don’t have one of those chip-enabled credit cards and that’s despite the fact that the credit card industry has set a deadline of October 1st to get all of these cards into people’s hands.
Deal: Wow. So why so slow, the seeming delay here?
Schulz: Well, there’s a whole lot of money involved, and it’s expensive to put these cards out and it’s also expensive for merchants to be able to change their technology at the checkout counter to be able to accept these cards. And that’s an important thing to because the October 1st deadline came about because the big credit card companies told the merchants that if they don’t have the technology to accept these chip cards on October 1st of this year, then the merchants will have the liability for any credit card fraud that goes on after that date. So it’s a big deal.
Deal: Got it. For all of this to happen then, for security to be at its maximum – one, a consumer has to have this chip-enabled card and two, the merchant or retailer needs the proper machinery or hardware?
Schulz: That’s correct. And both elements are a little slow in moving. You’ll see the big boys of retail – the Walmarts and Home Depots and Targets – will probably have their technology caught up to accept these cards as of October 1st. But the mom and pop shop on the corner isn’t likely to. Partially because it’s a big expense, but also partially because a lot of them just don’t know that this is going on yet.
Deal: For the mom and pops, as you mentioned, is there a cost to them typically? Or is it part of the nature of being in business with a credit card company that you would just be handed one of these?
Schulz: No, there’s definitely a cost to it. The new terminals can cost anywhere from a few hundred dollars to over $1,000 to upgrade, but then there’s also training your employees to understand how they work and to answer consumers’ questions. So there’s an awful lot that goes into it and it’s really not that surprising that things are moving a little slowly.
Deal: We’re speaking with Matt Schulz, Senior Industry Analyst at CreditCards.com. We’re talking about how these chip-enabled credit cards are slow to roll-out. Will the chips be in debit cards also, Matt, or just credit cards?
Schulz: They will eventually be in both credit cards and debit cards. The banks have been rolling out the chip credit cards a little more quickly than debit cards. So you’ll probably have a new chip credit card by the end of the year, but the debit card might take a little bit longer.
Deal: Thanks Matt. Matt Schulz from CreditCards.com.