The COVID-19 pandemic has affected nearly 200 countries around the world. Unfortunately, the United States has been hit the hardest with the virus outbreak, with more than 300,000 registered cases and 9,000 deaths in less than two months.
In addition to severe health implications, the COVID-19 has a growing impact on the global economy. The gas industry, in particular, has also affected due to a decrease in oil prices. However, fuel station owners remain more concerned about the EMV October 2020 deadline.
Due to the recent COVID-19 situation, Most US states have enacted policies to close nonessential businesses. Amidst all the tension, gas station owners find themselves in a complicated situation regarding compliance with the EMV deadline.
Let’s find out more!
What is EMV?
EMV technology is a payment gateway developed by Europay, Mastercard, and Visa. An EMV card has an embedded microchip that facilitates secure payment at a compatible point of sale with associated technology.
Unlike magnetic stripe cards, which use the same information for every transaction, the chip-enabled cards generate new codes for each transaction. Hence, the stolen information becomes useless for hackers.
EMV deadlines and compliance rates
Visa and Mastercard were making efforts to migrate to chips years ago to fight against counterfeit-card fraud. The initial deadline set for EMV compliance was 2015, but for fuel retailers, the deadline was ultimately pushed due to the high costs of the migration process.
The previous deadline for EMV technology was October 1, 2017, which was later extended to October 1, 2020. It offered an additional three-year window to the gas station and c-store owners to become compliant.
However, the 2019 survey by Conexxus showed that 70% of convenience stores haven’t upgraded to the EMV technology. Due to the COVID-19 pandemic, gas station owners were hoping that the current October 2020 deadline will be further extended.
The Impact of COVID-19 on the EMV Deadline 2020
Unfortunately, Visa and Mastercard aren’t willing to give gas stations more time to meet EMV compliance, which means that after October 1, 2020, fuel pumps with old point-of-sale systems will face liability for any card fraud that happens at their facility.
Visa said in a statement that “As long as the magnetic stripe readers are in place, fuel dispenser merchants are becoming an increasingly attractive target.” The company considers moving to EMV technology an important step to ensure secure credit card payments.
The rejection of a request to delay a looming deadline means that gas stations around the United States are making efforts to upgrade their facilities to become EMV compliant. Still, they face multiple challenges in addition to financing.
The lack of availability of tech people to carry out the upgrade is one of the biggest problems. Moreover, some pumps aren’t wired with enough bandwidth to support an EMV transaction, which further adds complexity.
If you want to update the POS system of your fuel station and c-store to become EMV compliant, John W. Kennedy Company can help! Located in East Providence, RI, we’re an authorized seller of genuine Gilbarco products nationwide and specialize in the sale of gas stations and fuel equipment supplies, including the latest POS solutions.
Call at 1 800 238 1225 to get started!