Less than half of American businesses have adopted the credit card chip technology that was all the rage in the fall of 2015.
Only 37 percent of businesses are currently able to accept chip-enabled credit and debit cards, according to a survey by The Strawhecker Group. TSG's sample included 92 payment service providers that service more than 3.9 million merchants, or about 50 percent of the U.S. card-accepting market.
Chip cards, also known as EMV cards (for Europay, MasterCard and Visa), are touted for safety and improved security over traditional cards. Retailers, credit card companies and merchants were supposed to adopt the new technology by Oct. 1, 2015, or face penalties. Missing the deadline made U.S. card-accepting merchants liable for fraudulent transactions.
In September, 27 percent of merchants supported the new EMV cards, with an expectation of it rising to 44 percent by December. That has not happened four months after the deadline.
TSG found that the three big hurdles slowing EMV implementation are payment processor readiness, gateway readiness and technical staff resource availability.