In early December, the major credit card brands (Visa, MasterCard, Discover and Amex) announced they are extending the U.S. Automated Fuel Dispenser (AFD) EMV activation date from October 1, 2017 to October 1, 2020. This three-year postponement in the fraud liability shift is indicative of the large scope of EMV migration efforts and the complexities associated with application integration and certifications of multi-party system specifications. In an effort to ensure our fuel retailing customers are best equipped to minimize counterfeit fraud exposure at AFDs, NCR is fully committed to proceeding with the development of our AFD EMV solution as planned and providing guidance to our customers and partners on how to best navigate this change.
Chip payment technology is proven to reduce counterfeit card fraud – the most common type of fraud resulting from the massive data breaches covered in the news in recent years. EMV Chip technology is an important factor in combatting credit card fraud and there is currently great progress being made in the U.S. migration to EMV:
- Over 600 million Chip cards have been issued domestically
- Close to 2 million merchant locations, representing one third of storefronts, have upgraded to EMV Chip-activated terminals
- There is a 43% decline in counterfeit fraud and chargeback rates, which benefits Chip-enabled merchants
In a recent NACS online article, “Gas Stations Shouldn’t Relax EMV Upgrade Plans,” a compelling call-to-action was issued for the Convenience and Fuel retailing industry. "Even though the EMV deadline has been extended, retailers need to continue with their migration procedures.” Delaying outdoor EMV implementation potentially creates a more compelling target for fraud at the pumps as other vertical markets are actively accepting EMV cards. Because self-service fuel pumps are unattended, fraudsters exploit this to test stolen credit cards. Migrating to EMV Chip technology helps reduce exposure to this type of criminal activity.
In addition to fraud mitigation, there’s a larger opportunity for Convenience and Fuel retailers that stay the course to migrate to AFD EMV-ready solutions sooner versus later. Almost immediately, they can transform their business with a more engaging and consistent customer experience in the forecourt, using our new OPTIC solution, to bring customers into the store for additional spend. The screens at the pumps can be used to promote rewards and enable loyalty program activation, which results in a quantifiable increase in revenue; loyalty members spend 8 - 10x more than non-loyalty members per year. The cumulative effect of this additional revenue, over the course of three years, can help defray the costs of implementing EMV equipment at the pumps.
NCR is focused on equipping Convenience and Fuel customers with the most current technology to help increase their profitability and minimize fraud exposure at the pumps – enabling early adopters of Chip acceptance with a competitive advantage. Our solution uses an open platform that allows us to make software changes as new technology and additional forms of payment become available. Migrating to AFD EMV early is a smart business move for Convenience and Fuel retailers that affords them greater control over budgeting, planning, and deploying equipment upgrades on a timeline that supports their objectives.
NCR’s strategy as a hardware-enabled, software-driven business is to provide complete solutions that converge Point of Service, loyalty, payments, mobility, and ecommerce, so retailers can engage with consumers in a variety of ways. We will continue to partner with our third party vendors in enabling their EMV solutions and coordinate certification efforts between point-of-sale and AFD solutions for a comprehensive end-to-end offer. NCR’s ongoing drive to complete indoor and outdoor EMV certifications prepares and protects our customers against credit card fraud.