With retailers considering their options for Europay MasterCard Visa (EMV) equipment upgrades, the liability-switch date in October for in-store point-of-sale (POS) could be the “cry wolf” before the real beast comes tearing in.
The October 2017 date for dispenser POS may sideline retailers, in upgrades cost and the lack of equipment availability.
I spoke with Gray Taylor, executive director of Conexxus, for the lowdown. Inside the store, the equipment and upgrades essentially involve a new card reader, he says. It’s not that expensive of an upgrade, so compliance in 2015 is a possibility for the industry.
The dispensers are another story, with the challenges almost insurmountable if the industry is going to make the October 2017 liability shift date. Taylor’s points:
- Specifications for dispensers are just now coming out.
- Upgrades require new software.
- Any dispenser-POS combination needs certification.
- There won’t be enough product to fill the need.
- There won’t be enough contractors to install the upgrades.
- The $3.6 billion price for the industry likely will be out of reach.
The bigger concern, Taylor says, is that fraud at the pump is far greater than inside the store. Inside, cashiers handle the cards, putting a level of fear into criminals who have to face a real person. At the pump, it’s an unattended transaction.
Also, there are no incentives for making the costly upgrades, he says. The credit-card companies aren’t offering a discount on interchange fees, the headache of payment card industry (PCI) compliance won’t change, and the risk of chargebacks will not decrease.
So as retailers rev up for Round 1 of the EMV transition, the ominous approach of Round 2 may be the true source of fear.
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