The clock has struck midnight. That would be the just-passed deadline for fuel merchants to convert their automated fuel dispensers (AFDs) to accept EMV payment cards. Gas station operators had seen the EMV deadline extended more than once, and many were looking for a last-minute reprieve.
But that train…er car… left the station, so now fuel merchants that do not have EMV enabled pumps will be on the hook for any fraudulent transactions. Fraudsters are taking note, which should drive fuel merchants without EMV to speed up their payment security enhancements.
The following excerpt from a Business Wire article reports more on the topic:
New data from ACI Worldwide , a leading global provider of real-time digital payment software and solutions, shows that as of April 17, 2021 — the extended EMV liability shift deadline — less than half (48%) of fuel merchants will meet EMV automated fuel dispenser (AFD) compliance mandates. As of the extended deadline, the liability for fraud will now shift from card issuers to fuel merchants.
ACI surveyed fuel merchants that collectively represent 45,000 gas stations nationwide — including major oil companies, grocers and convenience stores. The data showed that only 50 percent of fuel merchants who were not fully implemented expect to be EMV compliant by the end of 2021.
“Although previously protected from fraud losses, merchants will now bear the brunt of fraud overnight,” said Debbie Guerra, executive vice president, ACI Worldwide. “While EMV compliance is a major undertaking, and one that requires a significant capital investment, there is no doubt that the pandemic also played a big role in some fuel merchants’ inability to meet the April deadline. With overall diminished resources due to the pandemic and slow testing and certification, which is typically done in person, merchants have certainly been challenged.”
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group