A new survey shows lower income respondents were more likely to lack knowledge of EMV cards than those in higher income brackets. Nearly 60% of consumers with an income of $25,000-$49,999 were unaware of EMV cards. However, only 26% of the highest income cohort ($150,000+) lacked knowledge of EMV credit cards.
The Harbortouch survey fielded to nearly 18,000 U.S. adults in late August, found that 56 percent of consumers are unaware of what an EMV or ‘chip’ credit card is.
Lower income respondents were more likely to lack knowledge of EMV cards than those in higher income brackets.
As of October 1, 2015, payment networks including VISA and Mastercard, will shift responsibility for credit card fraud onto U.S. merchants who do not adopt EMV cards as their primary method of credit card payment. These smart chips embedded within EMV cards are intended to make credit card fraud less likely. While common in Europe and other regions around the world, the technology standard is just now being adopted in the U.S.
The recent Harbortouch survey also investigated a variety of EMV usage trends among U.S. consumers who did report awareness of the ‘chip’ cards. Highlights include:
• Card replacements slow to arrive – The majority (53.6 percent) of consumers said they had not yet received replacement EMV or chip cards from all of their credit card providers.
• Rural residents lead urban dwellers in EMV card usage – 76 percent of respondents living in rural areas reported using ‘chip’ credit cards when paying for goods, compared to only 64 percent of respondents residing in urban areas.
• Gen Z reports lowest EMV usage, but ranks highest in mobile payment adoption – Respondents between the ages of 18-24, also known as Gen Z, were the least likely to use EMV credit cards (20.5 percent). However, Gen Z reported the highest usage of mobile payments (42.1 percent).
• Only half of consumers believe ‘chip’ cards will make them more secure – While payment networks believe in the security benefits of EMV, only 50.8 percent of consumers feel the technology will make them more secure. More men (58.8 percent) than women (41.4 percent) feel chip-enabled cards will make them more secure.
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