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 Mar '18Feb '18
# of CUs5,5965,757
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings81.5%82.6%
Loan Delinq.0.8%0.9%

         Credit Union Indicators

Small Businesses Struggle With EMV Readiness

The liability shift date for the chip cards is Oct. 1, 2015.

Just 32% of small-business owners are aware of upcoming credit card liability rule changes, according to the latest Wells Fargo/Gallup Small Business Index. That's despite potentially serious consequences if these businesses don't follow the rules.

The new set of credit card liability rules for businesses will take effect in October. These rules specify that businesses that don't upgrade to credit card equipment that can read new, chip-enabled credit cards could be liable for fraud and security breaches.

Only 35% of owners in the current Wells Fargo/Gallup Small Business Index, conducted July 6-10, report that they accept point-of-sale credit card payments for purchases, which might account for small-business owners' low awareness of the pending Europay, MasterCard, and Visa (EMV) rule.

Awareness of the EMV mandate is higher among this group than among those who don't accept such payments, as would be expected. But even among those who accept credit cards, awareness is 49%, compared with 23% among those who don't. So, about half of small-business owners who accept credit cards aren't aware of the major changes coming this fall.

It appears that a majority of small-business owners who accept credit cards but who don't have chip-enabled technology—about seven in 10—are, at this point, in no rush to comply with the mandate. About 30% plan to comply by October, while the majority plan to either comply at a later time (34%) or have no plan to upgrade their systems to comply (21%).

For many credit unions, the race to EMV compliance is more marathon than sprint.

Only 38% of credit unions expect their credit card programs to comply with the EMV chip card standard by the Oct. 1 liability transfer date, according to CUNA's 2015 Credit Card Survey results. Moreover, 36% of credit unions don't anticipate full EMV functionality until at least the end of 2016.

Nearly six in 10 credit unions will rely on a rolling reissue as magnetic stripe cards expire, while 27% elect for a complete, simultaneous reissue. Only 7% of credit unions have no plans to convert to EMV.