NEW YORK – With the October 1, 2017, EMV liability shift looming for automate fuel dispensers, many U.S. convenience store operators are preparing for the switch—to the tune of $6 billion.
Upgrading fuel dispenser point-of-sale technology comes with a price tag as high as $17,000 per pump, Gray Taylor, executive director of Conexxus, told CNBC, an expense that will cut into the bottom line of the more than 90,000 single-store operators with the 154,000-plus convenience store universe.
Taylor added that convenience store operators may have to replace their fuel dispensers entirely to implement EMV at the pump, and retrofitting existing dispensers can cost more than $6,000. “[T]he loss of gas pumps may create delays for summer drivers next year,” writes CNBC.
And as EMV chip technology continues to siphon resources for other operational and technology-related projects, many convenience retailers are advancing mobile payment technology to meet consumer demand for contactless/cardless payment options both inside the store and the pump.
Payment Week reported that many small businesses are opting out of the EMV standards by pushing mobile payments. A recent CAN Capital Small Business Health Index found that more than one in three small businesses (34%) accepted mobile payments, such as Apple Pay, which is a substantial increase from April 2015 when the number of small businesses that allowed mobile payments hovered at 13%.
As of October 1, 2016, U.S. EMV deployment will take place at the ATM. Last week Conexxus and the National ATM Council released an ATM Skimming Detection & Deterrence Guide for use at U.S. convenience stores. The guide helps ensure that U.S. convenience stores and retail ATM providers maintain their excellent track record for providing safe and secure transactions at in-store ATMs, despite a heightened near term card skimming risk from current implementation of EMV at U.S. ATMs.
EMV implementation is a major issue for the convenience and fuel retailing industry, which is why there are education sessions and group discussion opportunities specific to this topic taking place at the 2016 NACS Show in Atlanta, October 18-21. “Are You Prepared for EMV?” will highlight the essentials regarding EMV technology, including upgrading equipment and evaluating risks. At the “Group Forum: EMV,” subject matter experts will lead an interactive discussion on EMV deployment.