This article is brought to you by Invenco.
ALEXANDRIA, Va.—An epic change in the fuel retailing industry occurred last month. After being delayed three times since October 2015, the deadline for requiring U.S. gas stations to comply with the new EMV standard for pay-at-the-pump transactions officially arrived on April 17. Merchants now are financially responsible for any fraudulent non-EMV transactions at their fuel dispensers.
Fraudulent pump transactions are a serious threat to the industry. According to Conexxus, credit-card fraud at the pump has been rising at an average of 23% year-over-year, and it’s estimated that about $450 million worth of fraud will occur at outdoor payment terminals this year. While the most recent figures from Visa indicate that about half of U.S. fuel retailers have upgraded to meet EMV requirements, many still hesitate to make the hefty investment that compliance requires.}
According to Invenco, a global provider of secure, self-service payment solutions and retail fuel technology, replacing the fuel pumps at a typical four-dispenser station would run about $60,000, and a pump manufacturer’s retrofit would cost around $25,000. But that same station can be retrofitted and protected per EMV mandates for less than a third of that cost, plus a monthly rental fee below $150.
“The structure of Invenco’s program is the biggest differentiator between us and our competitors,” said Craig Panter, Invenco chief business development officer. “We’re the only rental offer on the market. The fuel retailer purchases our retrofit kit outright and rents the terminal for four years for $132 a month per pump. The rent pays for the pump terminal and monitoring all pay-at-the-pump activity. Our service team constantly monitors the status of the terminals, and if we receive an alert, we can diagnosis that issue remotely. The fuel retail customers can rest easy knowing they are compliant 24/7.”
During the four-year contract, Invenco covers all parts, labor and travel required to maintain the outdoor payment systems. At the end of the contract, the retailer simply pays a flat, low fee per dispenser for Invenco to install the latest version of pay-at-the-pump technology.
“That’s the biggest advantage of the rental program,” said Panter. “We anticipate future EMV mandates, such as contactless payments, and that will require updates in both software and hardware. Rather than purchasing pay-at-the-pump technology now and being on the hook for new equipment later, our renters are covered for all hardware and software during the life of the contract.”
Another benefit of Invenco’s retrofit program is the fast, easy install. While replacing a fuel pump can take up to six hours, a retrofit can be completed in less than 90 minutes with minimal disruption to forecourt operations.
“Invenco has the most extensive retrofit kit options in market,” said Panter. “Using a retrofit kit to bring pumps up to date and renting the EMV-compliance technology is an easier and more cost-effective solution for many retailers.”
This is the first installment of a two-part series about EMV compliance using rented software and hardware instead of replacing fuel pumps. Click here for more information about Invenco’s EMV-compliant payment terminals or email email@example.com.