Official VISA Release: U.S. Automated Fuel Dispenser EMV Liability Shift Delayed to 2020

Systems & Operations | Visa Rules 1 December 2016 
U.S. Automated Fuel Dispenser EMV Liability Shift Delayed to 2020 
U.S. | Acquirers, Issuers, Processors, Merchants, Agents 
Overview: The EMV liability shift for U.S. domestic automated fuel dispenser (AFD) transactions has been delayed until 1 October 2020. Visa will expand its current Visa Fraud Monitoring Program (VFMP) to help mitigate counterfeit fraud at U.S. AFDs during the interim period. 
In August 2011, Visa announced a roadmap for EMV migration in the U.S., which included a 1 October 2015 EMV liability shift for U.S. acquired point-of-sale transactions and a 1 October 2017 EMV liability shift for U.S. acquired AFD transactions under Merchant Category Code 5542—Automated Fuel Dispensers. A 1 October 2017 EMV liability shift was also subsequently announced for U.S. acquired ATM transactions. Visa allowed more time to convert AFDs and ATMs due to the complexity of retrofitting these devices. 
Visa has been working with merchants, acquirers and fuel industry providers to support migration to the more secure EMV technology. However, due to unforeseen challenges with EMV AFD solution readiness, Visa is delaying the U.S. domestic AFD liability shift to 1 October 2020. 
The EMV liability shift for international transactions acquired at U.S. AFDs remains unchanged and subject to the existing date of 1 October 2017. Additionally, the EMV liability shift at ATMs will continue as planned, with an effective date of 1 October 2017. 
To help mitigate increases in counterfeit fraud at AFDs in the interim, Visa will expand its existing VFMP to include a new U.S. AFD-specific fraud monitoring program. The expanded monitoring program will have unique thresholds based on U.S. AFD counterfeit fraud trends. For AFD locations that exceed the defined thresholds and reach enforcement status, issuers will receive chargeback recovery rights for reported counterfeit fraud. 
For more information, refer to the 1 December 2016 Visa Business News article “Visa Fraud Monitoring Program Will be Expanded to Help Mitigate Counterfeit Fraud at U.S. AFDs” and the advance copy of the related rule changes. 
Background and Additional Information 
AFDs are complex devices, and the development of EMV market solutions has been more challenging than envisioned in 2011. Not only is updating AFD terminals time consuming and difficult, but the hardware and software necessary to implement EMV, specifically to support U.S. debit transactions, is not expected to be widely available from terminal vendors until mid-2017. This makes it virtually impossible for AFD merchants to retrofit their gas pumps ahead of the current compliance date. 
To help mitigate fraud, the U.S. fuel industry has implemented a range of fraud tools such as the Address Verification Service and Visa Transaction Advisor. Visa has also improved Visa Advanced Authorization fraud scoring for AFD transactions to provide better predictive scores for issuers to use in authorization strategies. Combined with lower and more stable oil prices, these measures have reduced AFD fraud to historically low levels. 
Given the unique and unforeseen challenges of implementing EMV at AFDs, and the relatively low levels of counterfeit fraud for this market segment, Visa believes delaying the AFD liability shift until October 2020 is the best path forward. 
During this extended EMV migration period, fuel merchants and issuers must continue to be diligent in fighting fraud, including utilizing available fraud tools. Visa will continue working with the industry to share best practices and offer training and guidance on mitigating risks. 
Additional Resources:
Visa Core Rules and Visa Product and Service Rules: Deferral of EMV Liability Shift for Domestic AFD Transactions—U.S. Region (Advance Copy) 
Visa Core Rules and Visa Product and Service Rules: Visa Fraud Monitoring Program for US Automated Fuel Dispenser Transactions (Advance Copy) 
Counterfeit Fraud Mitigation Tools for AFD Transactions—Fuel Merchants Who Are Not EMV Chip Enabled 
Recommended Practices for U.S. Issuers to Optimize Cardholder Experience at AFDs 
Visa Payment Acceptance Best Practices for U.S. Retail Petroleum Merchants