New research shows 37.4% of American consumers have encountered a chip card reader not working at the time of checkout when making a purchase.
In a new study called No Easy Move: The Switch to EMV, Walker Sands Communications found 39% of consumers had to update online accounts or recurring billing after receiving their new EMV cards. Nearly 1 in 10 consumers (9.4%) had missed or failed to make a payment as a result of not updating accounts with the new card information.
Also, 40.8% of those 18-24 years old updated their online accounts with the new EMV card information, versus just 21.4% of those 60 years and older.
Other key findings of The Switch to EMV include outdated accounts lead to failed online payments. With more consumers turning to recurring payments and online subscriptions, the ability to store and use credit and debit card information on websites and within mobile apps can mean the difference between a cleared or late payment.
While many U.S. consumers received EMV-enabled credit and debit cards in advance of the liability shift, actual card usage has experienced a slow start with payment processors and retailers struggling to introduce and integrate working chip card readers at the point-of-sale with efficiency:
Nearly 1 in 5 consumers (17%) have never made an in-store purchase using a chip card reader.
More than 1 in 3 consumers (37.4%) have encountered a chip card reader that was not working at the time of checkout.
Only 10.3% of consumers report using a chip card reader in-store all of the time.
In addition to unreliable technology, the customer service experience of using EMV cards in-store leaves something to be desired. A lack of preparedness, knowledge and confidence among retail staff has many consumers feeling confused about paying with chip cards:
Nearly 1 in 4 consumers (23.7%) report encountering cashiers who were unfamiliar with the EMV process and/or could not guide customers through the process.
Nearly 1 in 3 consumers (30.7%) report experiencing confusion when using a chip card to pay in-store.
Consumers 60 years and older are nearly twice as likely (66.7%) than consumers ages 18-29 years old (34.6 percent) to experience confusion about where to insert a chip card.
Walker Sands is a public relations and digital marketing agency for technology and business-to-business companies.
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