CHICAGO — Beginning in April 2021, major credit-card companies plan to hold gas stations liable for fraudulent purchases, chargebacks and other counterfeit transactions if they have not converted to accept chip card payments at each pump and payment point.
The transition to this new normal has not been easy. New EMV-compliant gas pumps can cost $20,000 or more plus installation and associated downtime, according to point-of-sale (POS) company National Retail Solutions (NRS). However, as the liability shift nears, retailers have more affordable ways to reach outdoor EMV compliance than ever.
Click through for four reasons to meet the upcoming EMV deadline …
Chevron has started an incentive program, offering marketers and retailers $2,000 to $10,000 for each Chevron and Texaco gas station that has implemented chip-card and mobile-app technology.
Through the new program, marketers and retailers with stations that implement this technology by March 31, 2021, will qualify for a tiered-volume incentive based on each station’s annual gasoline and diesel volumes. No separate agreement will be required. Chevron will automatically process the payments after the marketers and retailers implement the technology.
Transaction Network Services (TNS) is introducing flexible pricing structures to help retailers offset the costs of outside EMV upgrades. As fuel retailers implement and complete projects to upgrade automated fuel dispenser (AFD) equipment at the forecourt to avoid the liability shift, the initial costs have proven to be a challenge for many. Yet it is critical to make these upgrades sooner rather than later to reduce fraud costs.
The longer retailers wait to upgrade, the more it will likely cost. Conexxus, a non-profit trade industry technology organization, found that installation costs tend to increase due to high demand leading up to an industry-wide change. On average, installation costs rise 14% six months before the deadline, 23% three months before the deadline and 33% at the deadline, and remain around 31% higher following the deadline.
NRS has launched the NRS EMV EZ Pump Solution, a pay-at-the-pump retrofit and payment processing service that accepts EMV (chip) payment cards.
The NRS EMV EZ Pump Solution also accepts contactless payments, mobile wallets, tap to pay and other options to eliminate common touch points at the pump in response to the COVID-19 pandemic.
The NRS EMV EZ Pump Solution includes NRS Pay credit-card processing to provide integrated processing. NRS Pay also works with NRS Petro's POS terminals for retailers who want an integrated management system and loyalty program.
Consumers want it
The pandemic is reshaping consumer behaviors and their attitudes toward merchants of all stripes, including fuel and convenience retailers. New data suggests consumer preferences for security, convenience and more options for pay-at-the-pump impulse purchases will influence where consumers choose to purchase fuel, and how they pay, in the near future.
Transaction Network Services (TNS) commissioned a survey of U.S. adults to learn consumer attitudes toward and experiences with various pay-at-the-pump opportunities.
“Sixty-five percent of respondents said they prefer to use pay-at-the-pump facilities that are EMV compliant, demonstrating a heightened level of awareness among consumers for what many perceive as an industry issue,” said Dan Lyman, head of payments market North America for TNS. “With the April 2021 liability shift deadline for EMV compliance soon approaching, this is a clear call to action for retailers who have not yet upgraded.”