WASHINGTON—A new study shows that the major card issuers are getting ready for EMV, but the status of retailers is still up in the air.
With the October 2015 Visa and MasterCard EMV liability shift looming, CardHub recently contacted the 10 largest U.S. credit card issuers, the 50 largest retailers—and five smaller retailers that were recently the victims of large data breaches—to assess their readiness.
The report found that all 10 of the largest credit card issuers are in the process of issuing chip-based credit and debit cards and expect the majority of their portfolios to be updated by the end of 2015. BofA, Citi, Discover, USAA, Chase, Capital One and American Express all said the majority of their cards will be chip-based by the liability shift deadline.
But the same level of readiness can’t be seen among retailers, which are less clear about their plans, according to CardHub. While all of the major retailers that responded to the CardHub survey said they are on track to meet the October 2015 EMV transition deadline, retailer transparency regarding EMV is “surprisingly low given the level of consumer concern about data breaches and financial security,” CardHub stated. “Only 17 of the 55 retailers we contacted provided information about their policies—including only 25% of those that have been victims of breaches.”
The study also revealed that all of the major banks are issuing chip-and-signature cards, with 40% also supporting PIN capabilities. Sixty-five percent of retailers plan to accept chip-and-PIN cards as well, CardHub reported, adding that all chip-based cards issued by major banks will continue to have magnetic stripes.