Opinion: EMV At The Pump: Should You Wait Until 2020?





The following article was written by Richard Browne of Patriot Capital for www.cspdailynews.com.  Read the original article here.

ATLANTA — There was a collective sigh of relief on Dec. 1, when Visa, followed quickly by MasterCard, announced a shift in the forecourt gas-pump liability date from 2017 to 2020. I believe there also was a smile in some boardrooms, as retailers that already have invested see an opportunity to capture gallons and inside sales.

Industry reports suggest that about 33% of dispensers in the market are capable of processing payments to Europay MasterCard Visa (EMV) data-security standards with either a software or small hardware upgrade. This represents dispensers installed since 2011, when both Wayne and Gilbarco started shipping “EMV-ready” dispensers. Both manufacturers are reportedly close to or have released the required software to enable EMV, and there’s high probability that many networks will be processing EMV from pumps by mid- to late 2017.

So what?

Consumers are quickly becoming used to using a chip card. They are aware of the reason for it: increased security. Crooks are aware of EMV, and can quickly identify fuel dispensers that have—or don’t have—EMV payment enabled.

I believe we’ll see two things happen:

  • Consumers will shift their buying behavior to EMV-enabled gas pumps, starting in 2017. A high percentage of your customers have had one of their cards breached in the past and want the most secure transaction possible. In Europe and Canada, which have completed their implementation, retailers saw gallons shift to “secure” EMV sites from those that hadn’t yet been upgraded. Switching costs are low in our industry; it’s very easy for a customer to drive another block for a safer experience.
  • Criminals will have a shrinking number of sites to target. About 10% of dispensers are replaced each year. This suggests that, with no acceleration in upgrades, more than 50% of dispensers will be EMV-enabled in 2018, and 70% in 2020. The crooks have got to eat, and they will have half the sites to target that they had in 2015. Combine this with EMV implemented at restaurants and retail, and the potential places to commit card fraud becomes a small target.

Gray Taylor, executive director of Conexxus, said that Visa and MasterCard’s delay announcements appear to not clearly delay liability for retailers who experience higher fraud rates or those accepting foreign-issued cards. “We don’t see this announcement as a true game delay, but a bit of breathing room,” he said.

It is important to review your fraud liability with your processor, and understand Visa and MasterCard’s plans and how increased fraud may affect you.

It’s highly unlikely that we’ll see the liability upgrade deadline move again. With the installed EMV base naturally approaching 80% or more dispensers, the arguments that caused the date to move have less sway, and all other U.S. payments markets will have been EMV-enabled for five years.

Waiting will get more expensive. It’s generally anticipated that the new administration’s economic plans will result in higher inflation and interest rates. Combine this with promised lower tax rates, which effectively reduce the benefits of capital depreciation and makes equipment more expensive on a net-cost basis, and increases in labor costs, and waiting will be expensive. For multisite operators, the change in bonus depreciation from 50% today to 30% in 2019 and 0% in 2020 can have a significant cash-flow impact.

Competitors that have upgraded to new pumps will have enhanced marketing capabilities that the newest pumps provide. Video screens and contactless payment provide marketing options that can increase adoption of customer-loyalty programs and drive more traffic into your store.

The bottom line: Delaying pump EMV upgrades means potential market-share loss and higher fraud risk for your site. Consumers—and crooks—will know who’s made the move.

The John W. Kennedy Company appreciates your business and continued support!

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Gasboy Plastic Electronic Keys Now Available To Buy Online

While Gasboy will no longer be providing plastic electronic keys, you can still find them at the Kennedy Company, and they can be purchased through our website or by calling us directly at (800) 451-4021.

UPDATE AS OF JANUARY 21, 2017: Just to clarify, these keys can still be obtained direct through Gasboy for the time being.



Gasboy Fleetkey Blank Green Key




Gasboy Fleetkey Blank Grey Key




Gasboy Fleetkey Blank Black Key





The John W. Kennedy Company appreciates your business and continued support!

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Register Now: Webinar On Detecting and Reducing Losses in your Fueling System

Upcoming Webinar:

Detect and Reduce Fuel Losses at your Fueling Sites

Are you managing your fuel inventory with as much rigor as your in-store inventory? Fuel inventory represents a major portion of your business’s investment, but most retailers do not track it as closely as in-store goods.

This webinar will discuss the effect of fuel losses and variances on the profitability of fueling operations and what steps your organization can take to minimize them.

The half-hour broadcast presented by Scott Menke, Veeder-Root Global Product Manager, Automatic Tank Gauges, will include:

  • The true cost of fuel loss and variance to your business
  • The primary sources of fuel loss
  • Methods for better tracking and understanding your fuel inventory

Attend on Thursday, December 15th at 2:00 PM EST to learn how you could save your business money and more accurately account for your fuel inventory.

Click This Link to Register Online Now.

The John W. Kennedy Company appreciates your business and continued support!

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OPW Announces New DEF Mis-Filling Prevention Device

OPW Corporate Logo


opw-mfpdThe OPW DEF Mis-Filling Prevention Device is now available for Truck Stops and Convenience Stores.  There are countless vehicles not equipped with MFPD technology, and this device is required when magnetic DEF Nozzles are used.  Provide your customer peace of mind by stocking the MFPD in your retail outlet.

For more information, check out the official distributor bulletin.


The John W. Kennedy Company appreciates your business and continued support!

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Visa Extends EMV Deadline

Retail Group Cheers Ruling on Visa Processing Issue

OPW Releases Phoenix SQL Lite™

OPW Corporate Logo

opw-phoenix-sql-liteOPW Fuel Management Systems has announced the release of its new Windows-based fuel management software, Phoenix SQL Lite, for distribution.  In addition, they are also offering customers a free, fully functional 60-day trial of the software.  Phoenix SQL Lite replaces the previous OPW Phoenix programs, Phoenix Premier and Phoenix Plus, and supports the OPW FSC3000 Fuel Site Controller-based fuel control systems.  Fully compatible with Windows 7, 8, and 10, Lite is designed for easy installation on a single PC-based workstation, and its interface for OPW and third-party automatic tank gauges enables it to perform site reconciliation.  for more information, check out the Distributor Bulletin from OPW and the official product page on their site.

The John W. Kennedy Company appreciates your business and continued support!

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Notice: Holiday Closings

We would like to remind our customers that on Thanksgiving (Thursday, November 24), all JWK branches will be closed for the holiday, and will be closed for the day after (Friday, November 25) as well.  In addition, we will also be closed on Monday, December 26, the day after Christmas, and Monday, January 2, the day after New Year’s.

We would like in advance to wish all of our valued customers a Happy Thanksgiving, a Merry Christmas, and a Happy New Year!

The John W. Kennedy Company appreciates your business and continued support!

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Drive Home 2016 With Two Great Encore Financing Options


Get ready for EMV and enhance your experience!  Patriot Capital has two great financing alternatives from Gilbarco they’d like you to know about before the next price increase:

Gilbarco Bundle $2000 Financing Rebate.
Gilbarco has launched their Fall bundle promotion, providing bundle savings of up to $13,500 per site.  Customers who utilize the Passport / Encore 700 4 crate bundle and who finance with Patriot will receive a $2,000 rebate check after final funding.

Don’t Make a Payment Until 2017
Order the Encore 700 S to be eligible for no payments until January 2017 on the dispensers and related installation costs.  If you are financing with Patriot, order now to, other than a one month security deposit, make no additional payments until 2017.

Taking advantage of these promotions provides you with many benefits, including:

  • an enhanced customer experience at the pump and the opportunity to grow your station’s sales with Applause TV
  • being EMV ready on the forecourt
  • purchasing ahead of future price increases
  • capturing Section 179 tax benefits to create cash flow advantages* (tax disclaimer at bottom)

* Please consult your tax advisor for advice regarding your particular situation.  Patriot Capital does not provide tax advice.

You can view the official bulletin from Patriot Capital here.

The John W. Kennedy Company appreciates your business and continued support!

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Morrison Brothers 939 Fusible Valve Quality Alert Bulletin!

Morrison-Bros_logomorrison-939-valveMorrison Brothers has sent a notice to all distributors who have purchased the 1/2″ 939 Fusible Valve (Morrison Part #: 939—0200 1V).  The reason for this notice is a recent Quality Alert Bulletin received from R.W. Beckett Corporation, who supplies Morrison with the 939 Valve, specifically regarding the 1/2″ model.  No other sizes or models have been affected.  The purpose for the bulletin is a deficiency in the 1/2″ model; when exposed to temperatures exceeding the handle’s temperature rating, the valve may fail to properly shut off the flow of fuel, potentially resulting in a ruptured fuel line.  Beckett is currently working on a redesigned valve that will eliminate this potential risk, which is anticipated to be available by January 1, 2017.

The recommended remedy for customers who purchased and are currently using these valves is an immediate field retrofit or replacement.  In the case of the former, Beckett will provide retrofit kits upon request and will pay a $50.00 labor allowance for each valve retrofitted.  In the case of the latter, Beckett will provide credit for the valve as well as a $125.00 labor allowance for each valve replaced.

For more information, refer to the official Quality Alert Bulletin.

The John W. Kennedy Corporation appreciates your business and continued support!

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