• Avoid Chargebacks by Upgrading Your Pumps to Support EMV

  • Avoid Chargebacks by Upgrading Your Pumps to Support EMV

    The convenience store industry has reached the point where they must comply with the latest credit-card security standards at fuel pumps. As of April 17, gasoline retailers must integrate chip-enabled credit- and debit-card hardware and software in their fuel pumps (often called EMV compliance, referring to Europay, Mastercard and Visa payment cards) or risk paying the cost of future chargebacks caused by skimmers at the pump.
     
    According to the last Conexxus survey results, only 15 percent of fuel retailers updated their pumps to support EMV.

    The biggest reason businesses should upgrade is the consequence of chargebacks. Today, the burden of chargebacks is placed on the financial institutions; however, station owners are now responsible for that financial burden.
     
    This year, the amount of fraud targeting outdoor fuel dispensers is expected to hit more than $450 million. It is easy to get cardholder data on-line and make a fake card. If you do not have an EMV reader, you will lose the chargeback request every time. Even if you have a video of them signing, the station owner is now liable with the new mandate. 
     
    With margins low on fuel, the financial implications could be huge. It will only take a few chargebacks with large SUVs to wipe out your profits for the day. I sympathize with you on why you have to spend money upgrading your equipment to support the card associations. However, you don't have any choice if you want to accept charge cards. But, you do have options as far as the solution available.
     
    Many stations feel like the cost if too high – this is evidenced by industry survey data.


     
     
    The first option is a full pump replacement, which is a good option if your pumps are near the end of their life cycle and cost is not as much of a concern. However, since cost is the number one reason stations are not upgrading and for the purpose of this article, we are focusing on how to save money and become compliant. The second option is retrofitting to your existing pumps. This is an ideal solution if expense is your concern. Retrofitting can be completed for half or one-third of the average cost of a full pump replacement in some cases. Third party vendors can provide a more cost-effective option. Several companies EMV in-pump card readers can be retrofitted to existing pumps, which significantly reduces the cost of installation.
     
    Now that we have reached the  deadline the traditional industry certifications for EMV which takes 6 months or more, places station owners at risk. Another benefit of a retrofit is that it can allow you to upgrade one pump at a time. Either way—pump replacement or retrofit—upgrading is well worth it because the consequence could mean a station closing its doors forever rather than just a few weeks.
     
    The right semi-integrated, retrofit solution that enables EMV-compliance at the pump can get the job done for you in a matter of hours through a pump-by-pump implementation process, so you don't need to shut the station down. These new solutions also provide new technology, such as enhanced security (PCI and end-to-end encryption), QR code scanning, PIN-on-glass, EMV chip and PIN, and contactless payment via card tap or near field communication (NFC).
     
    New systems use the cloud to adhere to internal systems and interfaces with standard industry protocols. Deployment and industry strategy ensure a seamless transition. It minimizes downtime by phasing deployment while temporarily giving the option to run the old and new system temporarily.
     
    Here are some things to consider about the retrofit option:

    1. Some pump companies have retrofit kits for some of their new pumps. Typically, they are pretty expensive because those companies really want you to purchase new pumps.
    2. You can purchase a new non-EMV pump and add a retrofit kit to it for much less money.
    3. You can purchase a used pump and add EMV to it for even less money.
    4. You can purchase a retrofit kit from a third party for a lot less money and use your existing pumps.
     
    The bottom line is that there are lower-cost options worth the money when you consider the consequence of not upgrading could put your station out of business. If you have questions about upgrade options, you can reach our team at petrosales@soundpayments.com or call 844-319-5635.