Many retailers worry about how EMV technology will affect credit and debit card payments during the holiday shopping period. Although much of the world adopted EMV credit and debit card technology a while ago, the U.S. is still in the middle of transitioning to the new technology. Many retailers aren't happy with the strain put on their businesses. The added security is welcomed by many shoppers, but retailers are worried that the slowed processing speeds could contribute to frustrations during high traffic times like Black Friday.
Neil Stern, senior partner at Chicago-based McMillanDoolittle, wondered whether the slower transaction speeds would lead shoppers to simply spend more time online, according to The Chicago Tribune
"The bricks-and-mortar retailers were already fighting an uphill battle against the e-commerce guys, so the last thing they need are more reasons for customers to be ticked off at them," Neil Stern, senior partner at Chicago-based McMillanDoolittle, told The Chicago Tribune.
Although many large retailers have already switched over to the new card processors and will have had them in their stores for several weeks by the time the major shopping days hit, executives from these companies still worry about how this will affect consumer behavior.
John Drechny made comments at the Money 20/20 conference about the poor timing of the new credit card technology for brick-and-mortar retailers, according to LowCards.com. He said the cards will confuse and frustrate shoppers leading to much longer checkout lines throughout the holidays.
Some retailers don't feel EMV technology is worth it
According to LowCards.com, Drechny isn't the only retailer who has objected to the timing of the new card technology. This may be because only 58 percent of retailers surveyed in November said they had the technology installed and only 42 percent planned to meet the Oct. 1 deadline, according to data from a Randstad Technologies study Retail Dive reported.
Greg Buzek, president of research IHL Group, told Bloomberg Business most stores won't actually lose much money to fraud, and he isn't alone.
"We looked at the numbers and decided that moving to new payment devices didn't justify the cost," Caleb Mitsvotai, senior manager for innovation and technology at Panda Restaurant Group, told Bloomberg Business.
Many small businesses have not yet implemented the chip card readers. Bloomberg Business reported data from the Payments Security Task Force that showed only around 40 percent of checkout counters will have the technology by the end of 2015.
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