We’re officially in the second year of the chip liability shift. The first year of EMV implementation was tumultuous, and adoption numbers vary by source. But a recent study from CardFlight sheds light on EMV migration across the merchants CardFlight services.
In the CardFlight EMV Migration Tracker – October 2016, the impact of EMV chip card migration within the payments industry is assessed. Hundreds of thousands of transactions processed through the CardFlight payment gateway in all 50 states from October 2015 to September 2016 were examined.
The report is full of insights on the current EMV landscape. Our team reviewed the report and wanted to share three statistics that stood out from the rest.
78% of Cards Contained EMV Chips
Over the month of September 2016, 78 percent of cards presented to CardFlight merchants contained an EMV chip. Which means that more than 3 out of every 4 cards a customer presents is chip-enabled. CardFlight estimates an average monthly growth rate of 3 percent, translating into 85 percent of cards presented containing EMV chips by the end of the year.
96% of American Express Cards Contained EMV Chips
CardFlight dug even further into its merchant’s transactions and found the breakdown of EMV chip cards across American Express, Discover, Mastercard, and Visa. American Express leads the migration pack by a wide margin: with 96 percent of cards containing EMV chips. In second place is Discover, with 83 percent of cards containing EMV chips. Visa isn’t far behind with 79 percent chip-enabled cards. But Mastercard trails significantly with just 71 percent of cards containing EMV chips.
87% of Cards Presented to Travel & Transportation Businesses Contained EMV Chips
Travel and Transportation CardFlight merchants accepted the largest percentage of chip cards: nearly 90 percent of cards provided by customers to these merchants contained EMV chips. The Furnishing and Appliance as well as the Maintenance and Home Service industries also saw high rates of chip cards from customers. Which means that these industries, particularly Travel and Transportation, are the most vulnerable to EMV-related chargebacks if their terminals are not ready to accept chip cards.
As CardFlight demonstrates through its report, customers are presenting chip-enabled cards more and more. Merchants need to implement and certify their EMV terminals to avoid costly EMV-related customer disputes that they are now responsible for post chip-liability shift.