October 1, 2017, marked two years since the October 1, 2015, EMV liability shift took place at the Point-of-Sale (POS). Hardware and software upgrades should have already been made to your POS, allowing you to accept EMV cards and providing you with protection from counterfeit transaction liability. This liability, which historically has been assumed by the credit issuer, is now absorbed by the party that does not enable EMV during the fraudulent transaction. If you still have not made the necessary upgrades to your POS, please contact your POS vendor as soon as possible. Remember, before you can move forward with EMV at the forecourt, upgrades must be completed at the POS.
Dealers did get a slight reprieve when the liability shift for outdoor EMV was pushed back to October 2020. As a fuel retailer you need to decide if this means you should wait or move forward with planned upgrades. This decision extends beyond fraud liability and includes factors such as customer preference and the cost of waiting. Here are some reasons why you may choose to consider upgrading sooner rather than later:
- Technician and equipment availability. The closer the deadline, the more difficult it will be for manufacturers and contractors to be able to supply and schedule your upgrade.
- Equipment price trends. Special financing plans are available today allowing you to upgrade now with little out of pocket expense.
- Consumer payment security awareness. Consumers will shift their buying behavior to EMV-enabled gas pumps. Customers want and expect the most secure transaction possible.
- Tax code changes. Significant tax code changes have been proposed by the new administration. If these changes are implemented, the after tax cost of capital equipment may increase by over 30%.
- Bonus deprecation. Currently at 50%, bonus depreciation will fall to 40% in 2018 and 30% in 2019 under current tax rules.
- Increased interest rates. Feds have increased interest rates 3 times with another 4 increases forecasted.
- New features. Many new features like Liberty PAY, mobile wallets, Near Field Communication, encryption, 2D barcode scanning, Applause Media and inOvation TV provide you with the opportunity to increase your revenue.
- EMV at the pump. The first EMV pumps are now processing EMV transactions. Gilbarco announced their first “live EMV site” in June of this year. Both Gilbarco and Wayne are on target to widely release EMV software at the beginning of 2018. It is probable that more than 50% of pumps will be accepting EMV in the next two years.
EMV upgrades should not be looked upon as a burden, but as an investment. EMV is a smart and logical business decision, reducing your exposure to fraud, allowing customers to pay with confidence and protecting your customer against fraudulent transactions.
If you require further assistance, please contact the office at (800) 452-7004, extension 3326.