Visa has announced a three-year postponement of the liability shift date for self-serve gas pumps to be certified to process smart chip card transactions. Instead of the original date of Oct. 1, 2017, it is now Oct. 1, 2020, according to an announcement on Visa's website.
The company acknowledged that "five years after announcing our liability shift, there are still issues with a sufficient supply of regulatory-compliant EMV [Europay MasterCard Visa-standard] hardware and software to enable most upgrades by 2017." Stating that "fraud rates at fuel pumps are relatively low -- approximately 1.3 percent of total U.S. payment fraud," the company explained that it is moving the liability shift date and that, "We believe we have reached a balanced conclusion for providing needed, additional time to merchants while continuing to push forward with the migration to chip." Visa said it will monitor payment trends at the pump to help gas-station operators and card-issuing banks prevent fraud during the interim period.
The decision to delay the deadline is the second time in a month that Visa has announced moves to appease relationships with merchants after years of tension between the two groups fueled by arguments over fees. Last week, the firm said t would revise its rules for using the new chip technology for debit-card transactions after some retailers claimed the requirements inhibited competition.
Basic Tip: Fraudulent use of a credit card is overwhelmingly the #1 chargeback retailers are facing today. Some warning signs of possible fraudulent use of a credit card are: Selection of merchandise without paying attention to price, size or color or items and not trying them on if apparel and/or purchase of either large quantities or large dollar amount gift cards especially when it is not during a holiday.
Advanced Tip: Not fully EMV (Chip and Pin) compliant? One of the things you can do is to verify the last 4 digits of the physical card compared to what is shown on your register or receipt. If the numbers do not match – then either cancel or void the transaction and request another form of payment.
2015 LOSS PREVENTION CONFERENCE
Don't Miss the “EARLYBIRD DISCOUNT” for the FRF Loss Prevention Conference!
Discounted registration ends TODAY!!!
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October 12-13 in Tampa – This will be a great conference for grocers!
EMV Liability Shift Approaching
Unfortunately, the Department of Labor has rejected the industry’s request for an extension of the comment period for the significant changes for overtime compensation. There have been many comments filed indicating the impact that raising the salary threshold for exempted managers would have on the retail grocery industry. The Florida Grocers Association will continue to monitor this issue and keep you updated.
Food Safety Meeting
Recently, the Florida Grocers Association and the Florida Retail Federation met with the Department of Agriculture, Division of Food Safety, to discuss the new Food Safety Inspection Scoring System. We had a good meeting and we brought up some things that they have adjusted and corrected in this new process. To review all the questions and answers that were submitted to the Food Safety Officials click here.
FOR IMMEDIATE RELEASE: September 9, 2015
Come October 1, if a business is not accepting EMV cards, the liability for fraudulent activity on credit/debit cards with chips switches from the card issuer to the business; FRF encourages businesses to make change to protect themselves and their customers
TALLAHASSEE, FL – The Florida Retail Federation (FRF), the state’s premier trade association representing retailers for over 75 years, reminds Florida businesses of the upcoming October 1 liability shift date and to update their point-of-sale terminals to allow them to accept the new security-enhanced EMV chip cards. After October 1, the liability for counterfeit fraud shifts from the card issuer to the merchant. By making this change, businesses will help save themselves potentially tens of thousands of dollars in fraudulent charges, while also increasing the safety and protection of their company and their customers.
“We strongly encourage every business in Florida to make the switch to the EMV chip cards, which provide more security for the consumer and less liability for the business owner,” said FRF President/CEO Rick McAllister. “FRF stands ready to support Florida’s 270,000 retailers and their millions of point of sale terminals which need to incorporate this newer technology to continue providing their customers with a safe and enjoyable shopping experience.”
EMV - which stands for Europay, MasterCard and Visa - is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions. This technology was adopted by most European countries more than a decade ago and has resulted in significant drops in fraud, saving merchants hundreds of millions in lost income. While at the same time, fraud in America has doubled.
To help those businesses wary of the initial upfront investment that comes with upgrading their technology and point of sale terminals, FRF is offering terminals for just $99, down from the already low rate of $350. This was done to ensure that every business that wanted to make the switch has the financial capabilities to do so.
“FRF has been working with our members to both inform them of this upcoming change and support their efforts to make the switch to accepting EMV,” said Jon Stolp, FRF’s Vice President of Membership. “It’s our goal to do whatever we need to do to convert as many of our members as possible prior to the liability shift date and we are encouraged by the response so far.”
ABOUT THE FLORIDA RETAIL FEDERATION
The Florida Retail Federation is the statewide trade association representing retailers -- the businesses that sell directly to consumers. Florida retailers provide one out of every five jobs in the state, pay more than $49 billion in wages annually, and collect and remit more than $20 billion in sales taxes for Florida’s government each year.