Wednesday, March 23, 2016

By the Numbers | How Small Businesses Are Paid | Q1 2016



Only 39 percent of small business merchants have upgraded their point-of-sale devices to accept payments from chip-embedded credit cards. As we shared last August, if a merchant didn’t upgrade their payment devices to process chip credit cards by October 1, 2015, the merchant would be liable for most fraudulent point-of-sale (POS) card transactions. (Previously, the card issuer was typically liable.) As part of their ongoing research into small business technology adoption, Pymnts.com and Sage explored the reluctance of small merchants to upgrade their POS systems. Here is part of what they discovered. (Download full report at Pymnts.com.)




Methods of payments accepted by small businesses


(Percentage of respondents whose business accepts types of payment, either face-to-face or electronically.)


98% | Checks

67% | Cash

64% | Credit / Debit Cards

53% | ACH / Direct Debit

36% | Wire Transfer

13% | Pay Pal

1% | Apple Pay

1% | Android Pay




How small businesses rate themselves for their use of technology to pay others


8% | Ten (Best)

11% | Nine

14% | Eight

13% | Seven

10% | Six

16% | Five

9% | Four

7% | Three

7% | Two

5% | One (Worst)




Merchants that can accept chip cards


(Percentage of merchants who’ve upgraded their point-of-sale equipment in order to accept EMV “chip” cards)


39% | Can process chip credit cars

36% | Cannot process chip credit card

19% | Doesn’t if their POS system has the capability

5% | No answer




Reasons merchants upgraded to accept chip card payments


(Percentage of merchants)


38% | Security

36% | It was required

7% | Included with upgrade

4% | Ease of use

5% | Other




Illustration: ThinkStock

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