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Although the migration to the global payment standard EMV (Europay, MasterCard and Visa) has posed both a financial and logistical challenge for many fuel retailers, the conversion also represents an opportunity for fuel sites to become more competitive. Here’s a look at where we stand now and how fuel sites should prepare for Phase 2.
What is the current status of the EMV conversion?
The liability for fraudulent POS charges shifted from banks to retailers this past October, and the liability for automated fuel dispenser transactions will shift to retailers in October 2017. C-stores and gas stations are in the midst of completing phase one and beginning phase two of the EMV conversion.
What could happen if a site delays conversion?
Although some retailers are frustrated about the conversion costs (averaging $26,000 per site) and the limited security that the majority of EMV cards currently provide (most cards don’t yet utilize PIN security), marketers would be wise to address EMV sooner rather than later. Retailers who delay their EMV migration are not only at significant risk for fraud liabilities resulting from increased card-skimming activity, they increase the likelihood they will experience EMV equipment installation delays due to extreme demand for a limited number of technicians.
As we head into Phase 2 of EMV, how can petroleum marketers maximize the upgrade requirements?
Because the second part of EMV focuses on updating automated fuel dispensers, Phase 2 represents a chance to execute other strategic forecourt enhancements in conjunction with EMV. For example, investing in media-rich advertising dispensing systems, which are shown to increase C-store sales, could offer a strong return on investment. Installing mobile payment technology in tandem with EMV upgrades could minimize future site downtime and help position a fuel site for the future of fueling. Working with a petroleum equipment expert to develop a comprehensive site plan is an essential first step. With over 35 years of experience, Source representatives can help. Call 800-572-5578 or visit Source’s EMV Web page.
Watch Fuel Marketer News for More Info
Source’s Joe O’Brien will offer additional EMV tips for retailers in an upcoming article on fuelmarketernews.com. Keep an eye on Source’s Facebook and Twitter pages for an announcement when the new article has been published.
