The Aftermath Of The EMV Deadline For Pay-At-Pumps
The original deadline for pay-at-pumps was October 2015. It was the deadline for gas stations and pumps to become EMV compliant. When it became obvious that the deadline would not be met, that date was pushed to October 2017. It was moved again to October 2020 and then the Coronavirus pandemic hit, which added more delays to the process. The date was then moved to April 2021.
EMV chip technology has proven itself as an excellent defender against counterfeit fraud. When merchants adopted this state-of-the-art technology, there was a huge decline in card-present counterfeit fraud. The effectiveness of preventing fraud has led to many card manufacturers requiring EMV chip technology at retail locations. While many types of businesses are already required to have the EMV technology, deadline to accept EMV chip cards at gas stations and pumps was the latest addition. Read on to learn about EMV deadline for pay-at-pumps, the current state of EMV migration, the aftermath, and more.
The State of EMV Migration
Magnetic strips on cards are rarely used in Europe and other regions outside the U.S. In those regions, EMV chip technology has become the norm, and the U.S. is making progress to follow. Overseas consumers also use a PIN with their chip cards. This creates an extra layer of security that could one day make it to the U.S. The PIN is another level of security currently missing from cards in the States. Such layer of protection should drastically minimize fraudulent charges on cards that have been stolen, as without the linked PIN for transactions, the stolen EMV card would be useless.
According to the PCI Security Standards Council, further developments in the EMV technology mean that future contactless payments and transactions could require additional authentication means.
Since the EMV deadline for pay-at-pumps has passed, fuel pumps and gas stations are now 100% liable for any theft or fraud of their consumers’ data that arises from processing transaction through a magnetic card swipe. Fuel pump merchants that failed to convert their pumps to EMV, or who experience a high percentage of “fallbacks” because of faulty or dirty EMV equipment, will not only be held responsible for any fraudulent transactions but additional non-compliance fees for EMV can be assessed by the credit card processors as well. Non-compliance can have costly and significant consequences for gas station business owners.
Potential Consequences of Not Implementing EMV
While the EMV technology for pay-at-pumps may not seem mandatory, if you fail to comply now as a gas station merchant, you will assume liabilities for payment card fraud at your pump. Apart from assuming fraud liabilities, since you haven’t met the new EMV standard for the gas stations as you didn’t upgrade, your station will continue to see an increased level of hacking, skimming, as well as other fraudulent activities related to non-EMV transactions.
What to Do If You Missed the EMV Deadline
From various industry surveys, it is evident that many gas station and fuel pump merchants are still hesitant to support the EMV technology. If you are one of the people that were unable to meet the EMV deadline, then there are a few options you can consider:
- * Buy new pumps from a manufacturer that supports the EMV technology.
- * Buy a new pump from a manufacturer that doesn’t support EMV and then use an EMV retrofit kit from a third-party to upgrade it.
- * Upgrade your existing pumps with an EMV retrofit kit from a third-party.
- * Buy a used pump that doesn’t support EMV and upgrade with an EMV retrofit kit that you purchased from a third-party.
The Bottom Line:
Since the EMV deadline for pay-at-pumps has passed, gas stations are now 100% liable for any theft or fraud of their consumers’ data arising from processing transaction through a magnetic card swipe. Accepting EMV chip cards may seem as easy as upgrading your current equipment, but it might be challenging depending on what you currently have. An upgrade might not be possible if you have older equipment and you may need to replace your current equipment. You will also need to keep in mind other payment system factors, e.g. POS system, credit card processor, and the fuel brands you do business with.
It is highly recommended that you partner with a trustworthy Pay-At-Pumps Merchant Services Provider that can help your business succeed with the new EMV standards. The bottom line is that every fuel pump or gas station owner needs to be aware of the new EMV standards and figure out what’s best for their business.
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About The Author
Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high-risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial-related topics.