Do you have any idea what the impact of the EMV liability shift is going to be at your location if you are not complaint? Will it be $1 dollar a day, $1 dollar a week or $500 dollars a day?
The deadline is fast approaching, and I mean fast. The shift of liability drops on Oct. 1, 2020, in the retail world. That includes us, truckstop and travel center operators. Besides the requirement to be complaint with the new rule within the store, shop and restaurant, travel centers, truckstops and the hundred of thousand other fuel retailers also have to have card reader technology on the fuel pumps that uses cryptography to ensure credit card information is secure. The hope is that this technology will also help reduce fraud.
For most NATSO members this means either costly new equipment or upgrades to their existing compatible equipment.
While Visa reported in a study “that fraud rates at the fuel pump are relatively low – 1.3 percent of total U.S. payment fraud,” it will still be a significant dollar amount to those operators that are not compliant. In our ever-increasing competitive landscape, a couple of hundred dollars a day in liability shift will make a huge impact on the monthly profit-and-loss statement.
A survey by Conexxus found that nearly 70 percent of industry respondents did not have EMV-compliant fuel pumps. According to Conexxus, those who do not upgrade could incur costs of up to $201,000 per location over the next seven years, which means the fuel retailing industry could experience $451 million in card fraud this year.
Additionally, consider that the fuel pump equipment manufacturers are working night and day on installations of new equipment and upgrades as well as manufacturing the equipment itself. If you have not put your order in by now, you may find yourself on the outside looking in.
You will not just magically jump to the front of the line when you place your new equipment order or ask for the appropriate upgrade on Sept. 1, 2020. If you wait, the odds are you will not be compliant come October 1st. The manufacturers and service folks will do everything they can to make that happen, but when the liability shift happens and you’re not compliant, make sure you direct your frustration and anger at yourself and not them.
Finger pointing starts directly with yourself.
Here are several resources where you can learn more:
Gilbarco EMV Migration Guide: https://www.gilbarco.com/us/emv-migration-guide
Why You Shouldn’t Delay Upgrading EMV: https://www.gilbarco.com/us/blog/why-you-shouldnt-delay-upgrading-emv
First Data’s EMV Insights: https://www.firstdata.com/en_us/insights/emv-chip-card-technology.html
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