Visa, MasterCard, American Express and Discover Global Network have postponed the EMV liability shift for automated fuel dispensers (AFDs) in the United States from October 2017 to October 2020. Discover Global Network includes Discover Network, Pulse and Diners Club International. The EMV liability shift for ATMs, which is scheduled for October 1, 2017, remains unchanged.
The new deadline signals recognition by the card companies that meeting the original deadline would have been unreasonably challenging for fuel marketers. Visa acknowledged these challenges in its statement about the new deadline.
“We knew that the AFD segment would need more time to upgrade to chip because of the complicated infrastructure and specialized technology required for fuel pumps,” the statement said. “For instance, in some cases, older pumps may need to be replaced before adding chip readers, requiring specialized vendors and breaking into concrete. Furthermore, five years after announcing our liability shift, there are still issues with a sufficient supply of regulatory-compliant EMV hardware and software to enable most upgrades by 2017.”
In a statement from MasterCard, the card company reiterated that, despite the delay, EMV chip technology remains the leading solution for improving card security and preventing fraud.
EMV (short for EuroPay, MasterCard and Visa) is a technology standard for cards equipped with chips and the associated technology required to authenticate chip-card transactions. In October 2015, the liability for fraudulent POS charges shifted from the credit card companies to retailers. Upgrading outdoor dispenser terminal readers to be EMV compliant is Phase 2 of the EMV conversion. The liability for fraudulent charges stemming from non-EMV compliant dispensers will shift to fuel retailers in October 2020.
For fuel marketers, the extension creates some breathing room for completing equipment upgrades amid supply chain constraints and for obtaining the necessary certifications. However, fuel site operators should be careful not to interpret the new deadline as a reprieve from the EMV conversion mandates.
“The EMV extension provides fuel marketers, technicians and equipment partners the opportunity to address the upgrades in a more controlled and paced manner,” said Joe O’Brien, vice president of marketing for Source North America. “That notwithstanding, hesitation by retailers to move forward could jeopardize their ability to meet the 2020 deadline.”
The experts at Source North America have been helping fuel sites across the country complete EMV upgrades to their POS systems and their AFDs. Contact us today to learn how our EMV compliance planning and implementation services can help your site prepare for the Phase 2 liability shift.