Your customers may have gotten false information from a business conversation or news report or even may have misinterpreted a true statement. This misinformation may be causing merchants to avoid making needed business changes. That seems especially true when it comes to EMV adoption.
As the official October 2015 liability shift fades into the background, business owners who have not yet upgraded to EMV may not see the change as urgent. That's a mistake that could be very costly to your clients in the near future.
That's why now is the perfect time to touch base with customers. You can find out if they've made needed EMV upgrades at the point of sale (POS). If not, arm yourself with the following strategies in order to overcome common objections to EMV adoption.
Common Objectives from Retailers #1: Upgrading to EMV is Too Expensive
Fact: Not upgrading hardware and software to accept chip-card transactions could cost business owners a lot of money in addition to the trust and goodwill of their customers. For 2015, industry reports estimate the average annual cost of lost business due to compromised data at $1.5 million. That number includes harder-to-quantify costs like those related to unusual customer turnover, reputation losses, increased customer acquisition activities, and diminished customer goodwill.
Common Objectives from Retailers #2: Not Worried About Potential Fraud Liability
Fact: While small-business owners are split on whether or not chip-card technology will prevent fraud at the POS, EMV offers clear security upgrades compared to magnetic-stripe payments. In the current payments environment, 44 percent of small businesses are victimized by card fraud, costing merchants an average of $9,000 per incident. Losses in the US from credit-card fraud tied to counterfeit magnetic-stripe cards has reached $3 billion each year.
Common Objectives from Retailers #3: EMV Adoption Won't Benefit Merchants
Fact: Upgrading card readers in order to process chip cards translates into better security at the POS. That's clear from fraud-reduction stats in comparable economies around the world. But the transition also creates new payment-acceptance opportunities. Most mobile POS card readers currently available are EMV-ready, giving business owners the perfect opportunity to add this cutting-edge technology. Giving consumers more ways to pay boosts customer satisfaction and drives repeat business.
Common Objectives from Retailers #4: Processing an EMV Transaction Takes Too Long
Fact: Reportedly, a chip-card transaction takes about 15 seconds longer than a traditional magnetic-stripe swipe. In the beginning, it's likely that the combination of the new transaction approval process and customer unfamiliarity will slow throughput at the POS. But merchants can surmount this obstacle by educating both employees and consumers about the reasons for the change. As more Americans begin using mobile wallets, transactions will pick up speed.
The EMV transition has come and gone, but many merchants still may not understand the importance of this shift. By talking with your clients today, you can help them turn EMV adoption from a business threat to a benefit.
What objections to EMV adoption have you heard from your customers?