Visa has extended the EMV liability shift deadline for gas stations to become EMV-compliant to April 17, 2021. NATSO and many fuel retailing groups—including NACS, PMAA, and SIGMA—requested delaying the EMV deadline due to COVID-19 pandemic, citing equipment delays, and a lack of technician availability as the primary reasons.
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What is EMV?
EMV—which stands for Europay, Mastercard, and Visa—is a secured technology used to authenticate chip-card transactions. EMV cards are embedded with a smart chip that interacts with the merchant’s point-of-sale device to make sure that the card is valid. It adds layers of security against fraud and is virtually impossible to duplicate.
Therefore, EMV has become a global standard to accept credit, debit, and prepaid cards. EMV cards are processed for payment in two steps: card reading and transaction verification. EMV cards can also support contactless card reading using Near Field Communication (NFC) technology.
In light of increasing data breaches and counterfeit card fraud, U.S. card issuers have migrated to chip-enabled technology to protect consumers and financial institutions. The EMV cards contain a chip that generates a unique transaction code that cannot be used again, making it more secure than a magnetic strip.
According to a Visa report published last year, counterfeit fraud in the U.S. has been reduced by 87% for merchants who have completed the upgrade. The report also stated that 99% of the overall U.S. card transactions in June were performed via EMV cards. By the end of 2019, more than 1 billion EMV cards are already in circulation in the country.
EMV Deadline for Gas Stations
Gas stations were initially required to become EMV compliant by October 2017, but the deadline was pushed to October 2020 to accommodate the difficulties of upgrading fuel systems. Due to the COVID-19 pandemic, the deadline is further pushed to April 17, 2021, providing six more months to gas stations for the installation of EMV readers at fuel dispenser stations.
Gas stations that embrace the EMV technology before the deadline will not be liable for fraudulent transactions. Moreover, it will provide them a competitive advantage over fuel pumps that don’t support EMV transactions as most people prefer paying via credit card, more specifically, via their chip-enabled card.
About John W. Kennedy Company
John W. Kennedy Company has been serving the petroleum industry as a leading gas station equipment supplier. Located in East Providence, RI, the company is a leading supplier for petroleum equipment, supplies, and integrated solutions, including EMV-compliant POS systems. Call at 1 800 238 1225 or visit their website to learn more.