On October 1, 2020, counterfeit fraud liability will shift to you, the merchant, when an EMV (chip) card is used at a fuel dispenser that only has the ability to read the card’s magnetic stripe and not the chip.
Today, this fraud is being covered by the issuing bank. On October 1, 2020, and after, issuing banks will no longer cover fraud-related costs that occur at a non-EMV compliant fuel dispenser.
The petroleum industry is currently making investments to accept EMV cards at the dispenser in order to prevent chargebacks and fraud, increasing payment security and consumer confidence.
At this time, you should already be planning your dispenser upgrades to meet the EMV liability shift. Upgrading your dispensers requires time to plan and implement. Options for upgrading include retrofit kits and full dispenser replacements. There are over 800,000 dispensers that will need to be upgraded and limited availability of certified technicians, which will lead to delays in installation. You should also be considering lead time when placing orders for new equipment. Please plan ahead.
Remember the following:
- If you do not upgrade your dispensers by October 2020, this liability shift could result in thousands of dollars in chargebacks;
- Criminals will be targeting unprotected sites;
- Consumers will be looking for secure payment options; and
- As the deadline approaches, the amount of time and money it takes to complete upgrades will increase.
If you require assistance, or if you would like vendor contact information, please do not hesitate to contact your sales representative.