Gas Pumps Are In the Clear for Another 3 Years
Visa announced on Thursday (Dec. 1) that the EMV liability shift for AFDs, automated fuel dispensers and pumps, is being delayed for another three years. The deadline for merchants to upgrade to EMV technology at the pump is now October 1, 2020 instead of October 1, 2017.
This is great news for fuel merchants since the cost of upgrading to EMV standards would be very prohibitive, and the EMV software availability for gas pumps is very limited at the moment.
“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. For instance, in some cases, older pumps may need to be replaced before adding chip readers, requiring specialized vendors and breaking into concrete,” wrote Visa in a press release. “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.”
Additionally, Visa says that the fraud rate at the pump is still relatively low, making up only 1.3 percent of total US payment fraud.
The good news is that EMV has made tremendous strides in the US since the liability shift last October. 1.7 million merchants, which is over one-third of all brick and mortar stores, are now accepting EMV. Those merchants have seen a 43 percent decrease in fraud.
One step at a time, the US is working to reduce fraud. And gas pumps will be there to join them when the time is right.