EMV Transition Guide for Independent Fuel Retailers
Posted: | Author: JimmyC
EMV transition is coming soon. Are your prepared for the change over or paying the penalty?
There are two important deadlines to remember during the EMV (which stands for Europay, Mastercard, and Visa) transition. The first is October 1st of this year. After that date, businesses will be held financially responsible for fraudulent purchases made with any non-EMV compliant POS system. This deadline includes all in-store registers, including those inside convenience stores.
The second deadline is in October 2017, when fuel retailers need EMV updated payment terminals in dispensers as well, or else will be held responsible for fraud costs, which NACS numbers from two years ago estimate as about $2,000 annually per store.
As these deadlines are approaching, this transition guide will provide the reason behind the EMV model, and what fuel retailers can do to ensure compliance.
Why the Transition to EMV?
While the United States is the largest user of payment cards in the world, we are also behind the times in transitioning to the safer EMV model. An EMV credit or debit card stores secure information in an electronic chip rather than a magnetic strip. Duplication is far more difficult because data is encrypted on the chip. According to the Nilson Report, the cost of US card fraud in 2013 was $7.1 billion, while the rest of the world totaled $6.8 billion. The EMV model will make credit information more secure, and ensure the reduction of fraud and charge-backs in the United States.
How does the EMV Transition Effect You?
While the majority of retailers are considering upgrading or replacing their POS systems with EMV compliant models, fuel retailers must eventually modify their existing payment terminal equipment within each dispenser as well. Although many dispensers can be updated, some older dispensers may not have the ability to support the new terminals.
And keep in mind, all of these changes depend on your network being EMV ready as well.
Since data security is increasingly important to consumers, it stands to reason that people will choose the operators that keep their information most secure. Likewise, older systems may become a target for fraudulent or stolen cards, increasing fraud costs. So although the October 2017 deadline is years away, payment terminal replacement is a priority. Otherwise, it’s possible to lose revenue through decreasing business and increased fraudulent transactions.
Your EMV Compliance Options
Although there are still a couple of years before fees are incurred for outdated payment terminals at the dispenser, it’s important to start research now. Some dispensers, like the Wayne Fueling Systems Ovation2, provide featured options like iX Pay™ Secure Payment, which is compliant through 2020 regulations and easily updated when regulations inevitably change. Such systems allow security upgrades without replacing the entire dispenser.
It’s also possible that your current dispensers already feature iX™ or a similar updatable system. Be sure to partner with a reliable source and not replace any POS system or dispenser payment terminal that already works with EMV cards. As an independent fuel marketer, it is best to partner with your source for fuel systems products, like Shields Harper, to create a compliance action plan in the near future. Demand for certain systems will be high as the October 2017 deadline approaches, and a bit of planning now will save your business from future fraud fees.
Contact Shields Harper to learn more about Wayne Fueling Systems Ovation2 and other EMV compliant fuel dispensers, credit card payment terminals and POS systems.