The path toward what may ultimately be an $8.9-billion price tag for EMV compliance follows the ongoing battle retailers have waged against credit-card interchange fees. With mobile payment offering a glimmer of disruptive hope, the window for such respite seems to be closing as everyone from smartphone manufacturers to consumers show their hands.
2004
- Credit cards introduce payment card industry (PCI) standards, starting data-security talk and industry spending.
2006
- Credit-card interchange fees surpass c-store profıts—$6.6 billion in fees vs. $4.8 billion in profıts.
Mid-2000s
- Midsized chains begin to use Automated Clearing House (ACH) to bypass interchange fees.
2010
- Durbin Amendment limits fees on debit cards.
2011
- Credit cards announce Europay MasterCard Visa (EMV) in the United States.
- PayPal and others ignite mobile-payment fever.
2012
- Visa sets 2015 POS and 2017 dispenser EMV liability shift dates. MasterCard and American Express follow.
- Wal-Mart, Best Buy, 7-Eleven and other retailers start MCX mobile wallet.
2013
- Target data breach occurs.
2014
- February: Target CFO testifıes on its new security steps before Senate committee, citing EMV as a major part of its security solution.
- July:Walmart, Sam’s Club debut EMV at stores.
- September: Apple Pay introduced, opting to keep credit cards in the loop.
2015
- Consumer use of mobile wallets, payments lackluster.
- April: Visa says it won’t budge on EMV deadlines.
- October: In-store POS liability-shift date passes.
Oct. 1, 2017
- Dispenser liability-shift date looms, along with a projected $8.9 billion in costs for the industry to shift to EMV.
Breaking Down EMV Costs
In assuming the price tag for EMV, the convenience channel—due in large part to fuel—is taking on a heavy fınancial burden: $3.9 billion to meet the Oct. 1, 2017, date, and $8.9 billion over 10 years counting fınancing and maintenance costs, according to Conexxus, Alexandria, Va. The chart show the industry breakdown, in millions of dollars.
| Dispensers, upgrades | $2,843.5 |
| Point-of-sale (POS) upgrades | $228.3 |
| "Comms" upgrades | $382.8 |
| Ancillary parts | $105.3 |
| Installation labor, fuel | $170.6 |
| Installation labor, POS | $39.1 |
| Reinstalls, activations | $63.2 |
| Lost profit | $83.4 |
| Total | $3,916.2 |
Source: Conexxus
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