Visa announces EMV roadmap to the United States

By Parker Burke

Visa recently outlined a roadmap to EMV (EMVCo) contact and contactless chip acceptance in the United States.  While additional information is likely forthcoming from Visa and others, there are some key takeaways for customers in the retail fueling industry:

• Visa’s acceleration of contactless chip acceptance will likely help mobile payments penetrate the market more quickly.
• ­          Beginning October 1, 2012, if at least 75% of a retailer’s payment transactions occur at payment terminals that are chip enabled, the Visa Technology Innovation Program (TIP) removes the requirement for annual PCI-DSS compliance validation
• ­          By April 1, 2013, U.S. acquirer processors and sub-processor service providers are required to be able to support merchant acceptance of chip transactions
• ­          POS: October 1, 2015: liability shift for any in-store fraudulent transactions on non-EMV chip-enabled terminals  
• ­        Forecourt: October 1, 2017:  liability shift for any fraudulent transactions at fuel dispensers on non-EMV chip-enabled terminals 

While the retail industry awaits additional guidance from Visa, industry trade organizations (like NACS) have already begun to comment on Visa’s announcement, PCATS Executive Director Grey Taylor weighed in on the announcement: 

“NACS welcomes the migration from the current, unsecured payment system but is anxious to learn what financial incentives will be offered to convenience and fuel retailers to defray the huge cost of upgrading 800,000 dispensers and 300,000 points of sale,” said PCATS Executive Director Gray Taylor. “If Visa is coming to the market with reduced interchange, indemnification on fraudulent use of their products and relief for the retailer’s huge annual expense for PCI compliance, then we think there is a value proposition here. Without any one of these elements, it will be hard to justify the upgrade," he said, adding, "It is frustrating that Visa is still obsessed with dynamic account values, while doing nothing about authenticating the card user. EMV without user authentication only addresses part of the data security challenge.”

While the industry will likely wait for things to shake out before acting on their installed bases, many in the payment industry, such as WorldPay, have begun encouraging retail fueling owners and operators to strongly consider EMV-upgradable equipment as they evaluate new hardware purchases.  This upgradable hardware will help retailers take measures to future-proof their investments against future mandates and emerging payment technologies like EMV, mobile payments, and others.

The "M" in c-store

By Rodger Williams

Yea, it’s there.  If you don’t see it, you will.  We all know that Mobile technologies are poised to take payment to a whole new level. But what we don’t realize yet is the convergence of Mobile devices into the c-store environment.  From the forecourt to the store, Mobile devices will play an integral part in branding, increasing loyalty, faster throughput, higher sales and better tracking of what the fueling retail customer wants.  Mobile devices are what they are because they make things convenient; phone calls, emails, texts, Facebook, internet access and data storage 24/7 is why we can’t live without them.  So, it’s not a stretch to see the meeting of the mobile phone with the convenience store to help retail customers get what they want faster, easier and more secure. 

So, let’s look at just how mobile will allow more convenience in a c-store.  First, the c-store has roughly 3 peak times each day; early morning (7am to ~9am), lunch time (12pm to 1pm) and later afternoon (4pm to 6pm).  It’s during these peak times when customers may have to wait in line either at the gas pump, inside at the cash register, or both.  If these lines get too long, the customer may not return because the effort was not convenient.  It’s these areas where mobile technologies will help retailers who decide to adopt them.  Example of these technologies may include:

·         Mobile Checkout – Customers use their smartphones to scan the items they want.  The smartphone then links to the clerk standing by the door which also has a mobile tablet and performs the transaction with either debit or credit almost immediately (Less than 10 seconds).  Oh, and by the way Mr. Retail customer, since it’s your 20^th coke, you get a free song posted to your Facebook account. Thanks for your support.

·         Mobile CRIND® – Customers will pull up to a fuel isle in their car and either from the in dash device or their mobile phone, link to the fuel dispenser there by automatically transferring preferences like fuel type, loyalty and payment to the dispenser.  Basically, after they authorize the transaction, the customer simply gets out and fuels.  Ok, we know you’re in a hurry now, but since this is your 10^th fill up, stop in the next time you have a minute and pick up your free sandwich or other value item Mr. Retail customer.  Again, thanks for your support and see you next time.

·         Personal touch – Mobile devices give their users a sense of personal touch.  Retailers can form a bond via the personal mobile device and the brand through the transaction.  Users will feel more adept to visit that brand because it has become personal. In other words, it’s like a friend in Facebook “Hey, I know you and you know me.”

 This is just a glimpse of the possibilities these technologies will offer.