EMV Credit Cards Interview with Marketplace
CreditCards.com Senior Industry Analyst Matt Schulz spoke on Thursday, October 15, 2015 with Tracey Samuelson of Marketplace about the September 2015 EMV Credit Cards survey. The interview and transcript are below.
It’s not just Square that’s under pressure from those new chip credit cards. In it’s third quarter earnings yesterday Netflix blamed the credit card switch over for disappointing U.S. subscriber numbers. Marketplace’s Tracey Samuelson explains.
Tracey Samuelson: I’m sure this has happened to you: your card expires or the number gets stolen and the credit card issuer sends you a new one. And then you have to give that info to all the companies that store it or charge you automatically. The newspaper, the gym you don’t actually use, and yeah – you’re Netflix.
Deborah Baxley: I think I had three reissued in the past 18 months.
Samuelson: Deborah Baxley, who works in the cards and payments practice at Cap Gemini, says this is a perennial problem, but it’s been magnified by the switch to chip cards.
Baxley: With so many cards reissued at the same time, it’s like a perfect storm.
Samuelson: 120 million Americans already have their new chip cards, according to the Smart Card Alliance. That number is supposed to rise to 600 million by year end. Matt Schulz with CreditCards.com says people may be getting tired of constantly updating their info.
Matt Schulz: I definitely think that there could be fatigue because a lot of people have gotten new cards several times over the last few years with all the data breaches and now chip cards.
Samuelson: The changeover may be inconvenient, says Michael Packter, a researcher analyst at Wedbusch Securities, but is it to blame for Netflix’s recent performance?
Michael Packter: If I titled my note this morning, “The dog ate my homework and other excuses.”
Samuelson: He said if you really valued the service, you’d suck it up and put in your new info. So if people aren’t doing that with Netflix?
Packter: That belies a much bigger problem, which is there probably are a significant number of people who are paying but don’t actually use the service.
Samuelson: Like that gym you never visit, maybe another new card is just the excuse you’ve been looking for to quit. I’m Tracey Samuelson for Marketplace.