The Path to EMV 2020 – Acceptance at Your Location
A successful transition to EMV chip card acceptance for both inside the store and at the fuel dispensers takes proper planning and an understanding of the different components at your location, which will require upgrades or replacements.
Below are the components to consider:
All locations should carefully consider the need to transition to EMV acceptance and to develop a plan. Nearly all your customers carry EMV cards and have become accustomed to “dipping” their card into the payment terminal versus swiping. EMV cards provide additional security for cardholders and merchants in preventing counterfeit and lost/stolen fraud. If your location does not accept EMV cards, you open yourself up to paying for this fraud. The fraud for inside non-EMV transactions has already shifted to you. We have examples of locations that have had thousands of dollars of fraud that they have had to pay in the form of chargebacks.
The liability shift for locations not accepting EMV cards at the dispenser occurs on October 1, 2020. This means that the number of your chargebacks will increase as these chargebacks are currently being paid for by the issuing bank. This may mean hundreds to thousands of dollars of additional chargebacks not currently seen today. It is estimated that this number will grow exponentially.