The decision to delay the forecourt EMV liability shift from October 1, 2017 to October 1, 2020, came as quite a surprise to many in the industry. While the delay provides retailers with additional time to make EMV upgrades, upgrades are likely to continue at a rapid pace given the potential risks to retailers choosing to wait.
Despite the delay in the liability shift date, the petroleum industry will continue to move forward with implementation and dealers are encouraged to make upgrades as soon as they become available.
There are three important reasons why petroleum retailers should continue to be aggressive with their EMV upgrade plans:
1. Consumer and Fraudster Awareness of Chip Security
As retailers move toward EMV acceptance and EMV is turned on at more locations, fraud will continue to migrate to the forecourt. Sites without EMV technology will be the most vulnerable.
Consumer expectations on chip acceptance at the pump will continue to grow as forecourt software is released in 2017. Many dispensers already have EMV/chip hardware and are only waiting to be “turned on” to start accepting chip payment. Security conscious consumers may question why forecourt terminals are not accepting chip payment and may choose to shift their business to sites already accepting EMV.
2. Chargebacks in High Fraud Regions
Visa has announced a Fraud Monitoring Program that will go into effect in October 2017. This program will shift liability for counterfeited chargebacks at locations seeing excessive fraud.
3. Deployment of New Technologies
Many retailers are continuing to upgrade their sites ahead of the 2020 liability shift to take advantage of additional features that are only support by EMV platforms (forecourt media, contactless transactions, such as Apple Pay and Samsung Pay, end-to-end encryption, and anti-skimming technologies).
The delay of the liability shift does give retailers more time to strategically plan how to deploy new dispensers versus upgrading dispensers with payment retrofit kits. Please keep in mind that fuel pumps will continue to age and further depreciate as 2020 approaches. New dispensers offer many benefits that do not come with payment retrofit kits, including new metering and fuel-security features, remote monitoring of flow rates and pump electronics, and overall improved site image that can boost consumer traffic.
There are certainly many things to consider when approaching your EMV upgrade plans.