Domenica, 04 Dicembre, 2016

Visa gives gas stations three extra years to install chip-card equipment

Remigio Civitarese | 02 Dicembre, 2016, 13:17

"We will be working closely with our fuel partners, station owners, industry associations and third-party vendors to ensure a smooth transition to EMV".

Although the announcement came from Visa, EMV is a joint project with MasterCard and less includes that credit association as well. - Both Visa and MasterCard announced they are delaying the EMV liability shift for USA fuel dispensers from October 2017 to October 2020. Other merchants had to install the new equipment by October 1, 2015 or be responsible for the cost of fraud.

Visa continued that it had been engaging with participants throughout the payment system. What these deadlines mean, essentially, is that after that date merchants who have not upgraded their card readers to support the new chip technology assume a "liability shift" for fraudulent transactions. The EMV liability shift at ATMs will not change and will take effect as planned on October 1, 2017.

The chip-card push creates a delicate balancing act for Visa and Mastercard, which have clashed with merchants over many issues for years.

"While we remain committed to moving businesses to chip technology as quickly as possible, we are also constantly monitoring industry progress and attempting to proactively address marketplace realities", Visa said on its website. "Some of these challenges were anticipated as we embarked on the migration to EMV chip and others are unique to the USA because of the complexity of the environment and regulatory requirements that do not exist anywhere else", the company added.

The card network cited multiple challenges that are facing the gas-station industry as it moves toward chip cards, including equipment shortages and difficulties associated with replacing older pumps.

With the fuel retailing industry in a rush to adapt, or replace, dispensers to EMV over the last couple of years, it is unknown how this announcement will affect dispenser manufacturing companies and their EMV-compliant products.

"We are still sifting through the details, but the announcement appears to not clearly delay liability in retailers who experience higher fraud rates or those accepting foreign issued cards, so we don't see this announcement as a true game delay, but a bit of breathing room to work out the challenges", Taylor said. "Given the migration challenges for implementing EMV in the petroleum environment, Visa's and MasterCard's modification of the liability shift dates will be beneficial to the retail petroleum industry and the US chip migration".

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