ATLANTA -- Walking the show floor at the 2016 NACS Show and sitting in the many fuel-focused educational sessions, it was clear that three letters were on everyone’s mind: EMV. The looming liability shift dominated discussions in the booths and Georgia International Convention Center hallways. Here are a few takeaways from the show.
- In less than one year, liability is due to shift from credit-card companies to retailers on fraudulent pump transactions under the Europay MasterCard Visa (EMV) standard, but based on comments from retailers at the recent NACS Show, many still are undecided about making an investment in EMV-compliant payment equipment. According to the Petroleum Equipment Institute, only about 1% of the network of fuel pumps in the United States are currently capable of accepting EMV payment. The share of pumps that have EMV-ready hardware but still need software or network upgrades are a bit higher—think the low 20% range.
- It’s not for a lack of solutions. Major vendors such as Gilbarco Veeder-Root, Wayne Fueling Systems, NCR and Verifone showcased their EMV-ready payment terminals at the convention, all in different stages of software certification. Based on the age of their pumps, retailers could choose from retrofit kits or full replacements. But anyone looking to upgrade now is potentially facing a big wait as technicians prioritize the larger privately branded chains that began making the transition early.
- Some retailers may be hoping that the outside liability shift will be delayed just as the indoor one was, but based on conversation I heard on the show floor and in educational sessions from vendors and consultants, this is not likely to happen. Credit-card companies and other involved parties have learned lessons from the inside transition—namely, how to streamline the process—and will likely not need the extra time.
- How to pay for EMV upgrades is obviously the big sore point for retailers. Especially for retailers in rural markets, the risk/reward ratio is tough to figure out. Those looking to introduce higher ethanol blends could tap into grant money available at the federal and state level, suggested Robert White of the Renewable Fuels Association at an educational session on renewable fuels. He cited the example of one Kansas retailer who actually netted $15,000 after replacing his six pumps with higher-blend-compatible, EMV-compliant versions thanks to a combination of economic incentives. Branded retailers may look to their suppliers for some financial assistance, and word is that at least one of the majors is set to announce some discounted pricing on EMV-compliant upgrades for a subset of its customers. But with low oil prices hammering producers’ profits, don’t expect an abundance of cash, sources said.
- For those retailers who want to bring their forecourt experience up a notch, upgrading the dispenser with point-of-sale options that offer near field communication (NFC) capability to accept mobile payment options such as Apple Pay and Android Pay were on display, right alongside two-dimensional barcode scanning for processing coupons and QR codes. Lottery at the pump and gamification are also part of the mix, keeping customers engaged (and hopefully increasing) their transactions. The key is keeping the transaction moving along, however, and not tying up the pumps.
- What’s the next level of car wash for c-store retailers? Think combined touchless and friction systems from vendors such as Mark VII Equipment, or tunnel car washes from suppliers such as Ryko, which sees mini tunnels as a growing part of their c-store business.
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