The EMV liability shift, as it is called, is the Oct. 1, 2020, deadline for fuel retailers to install or upgrade to the more secure chip card reader technology that uses cryptography to keep credit card information safe and prevent fraud.
Up to now, the cost of that fraud has been overwhelmingly borne by the card-issuing banks. The deadline – now known as the EMV shift date – is when the burden of nearly all of the card fraud will “shift” to retailers who fail to upgrade pump readers to the new, more secure technology – more specifically, the weakest link in the transaction chain.
EMV stands for Europay, MasterCard and Visa. It’s an actual company, EMVCo., formed by those credit card issuing banks – American Express, Discover, JCB, Mastercard, UnionPay and Visa – to address fraud prevention within the industry. The result is the chip card that most consumers have already been using inside the c-store and other retail environments.
But that deadline for updating the outside card readers has been extended once already – and now, for c-store fuel retailers undecided about upgrading, it looms barely a year off.
Session panelist and Folk Oil Vice President Jim Linton warned those retailers that it’s later than they think. Linton stressed several times that the lead time for updating current fuel dispensers could take six months at a minimum.
Linton should know; Folk Oil has updated 100% of its pumps at all 35 of its multi-branded locations. He’s seen many of the things that can go wrong and delay the process.
Linda Toth, director of standards for non-profit c-store and petroleum market technology advocate Conexxus, said a study by her group found that 58% of retailers who have yet to upgrade believe they won’t make the liability shift deadline. And 25% said they have no idea when they’ll upgrade.
Linton advised retailers to ask themselves: Is it worth it to upgrade? Today’s panel’s consensus seemed to be that it is. Those retailers who’ve adopted a wait-and-see attitude on transaction fraud may be in for a big surprise. After the shift, fraudsters will be looking for fresh targets to replace those who have updated. By the time they decide to start the process, they’ll be way behind, he said. There’s already a shortage of technicians who can do the work and every job, he said, endures software bugs and other hiccups.
The panel recommended retailers start now and get ahead of the game. Otherwise, they may pay more in fraud paybacks than the cost of the upgrades
REIMAGINING MOBILITY 2020-2030
While news of the automaker Tesla dominates the Electric Vehicle (EV) headlines, Jacob Schram, senior adviser with the McKinsey & Company, told a NACS audience that he sees the auto industry on the cusp of a second inflection point. Schram spoke at the “Reimagining Mobility 2020-2030” educational session Wednesday.
The first inflection point, he said, came a century ago when cars replace horses as the primary form of transportation. Then, horse waste was clogging streets and causing a health hazard. Today, Schram said, that problem is carbon emissions.
“I believe that in the next 10 years,” Schram said, “there will be more change than in the last 100.”
Schram challenged the audience to envision a different, safer, more productive world springing out of advanced technology transforming the way we get around.
Autonomous driving, connectivity, electrification, shared mobility (ACES) – Schram called these the four disruptive technology-driven trends that have the potential to radically change the mobility industry.
As stricter European Union regulations force carmakers to develop technology to rely less on the internal combustion engine and fossil fuels. Volkswagen has developed an all battery car; Norway went from about zero to 60% EVs in just seven years.
“I’m not saying that you will stop selling fuel,” Schram told the c-store retailers at NACS. “What I am saying is that the fuel demand will diminish, and you will sell less fuel than you do now.”
He also said that stock market analysts will want to know if individual retail companies have a plan to address the reduced use of gas. When EV and ICE vehicles reach the same price, consumers will choose EVs, he said. And they’ll be looking for charging stations. Those with no plan for serving EV owners will see their stock values fall.
Schram said that it only makes sense for c-store fuel retailers to evolve into energy retailers.
“You are the right holders to benefit from the revolution that’s coming,” he told the audience. “So look at this in a positive way.”
“It’s not disruption,” said Schram. “It’s a new business opportunity.”
