By the end of 2015, it's expected that 70% of consumer credit card users and 41% of consumer debit card users will have migrated to chip technology. In fact, October marks the point at which many retailers and credit card issuers face a deadline to adopt EMV technology. Because of recent card security breaches, coupled with network rules that will shift liability of these breaches from the issuer to the merchant, many merchants are gladly making the move to EMV technology (chip-enabled cards).

What Do the New EMV Cards Mean for my Fleet?

11.3.15

EMV Card ImageBy the end of 2015, it's expected that 70% of consumer credit card users and 41% of consumer debit card users will have migrated to chip technology. In fact, October marks the point at which many retailers and credit card issuers face a deadline to adopt EMV technology. Because of recent card security breaches, coupled with network rules that will shift liability of these breaches from the issuer to the merchant, many merchants are gladly making the move to EMV technology (chip-enabled cards).

What is EMV? 

EMV chip technology is emerging as the global standard for credit card and debit card payments. EMV cards feature embedded microprocessor chips that store transaction security features not possible with a traditional magnetic strip card.  There is an expectation that chip-enabled cards will help to prevent skimming and counterfeit, reduce fraud from lost or stolen cards, and diminish merchant data breach risk.

Despite such sweeping adjustments being discussed, many people are misinformed about precisely which merchants are affected and when adoption will occur. Contrary to most industries, fuel merchants are not required to make the security adjustments until October 2017, the Automated Fuel Dispenser liability shift date. The liability shift date reflects the time by which merchants have to update their Point of Sale (POS) equipment or risk incurring the cost of fraudulent transactions at their locations.

How EMV Impacts Fleet Cards

Due to the delayed Automated Fuel Dispenser (AFD) liability shift date, the majority of fuel card transactions will not be affected by retail POS and ATM liability shifts. To reach compliance for this mandate, fuel merchants face millions in estimated adoption costs. At the moment, it seems unlikely that fuel merchants will make these modifications ahead of schedule.

Additionally, fleet cards require a valid employee or vehicle PIN with every transaction, which makes them inherently more secure than many card-based transactions. EMV technology will add an additional layer of security to cards but only after a significant number of fuel retailers adopt the technology.

If you’re worried about the security of your fuel cards, just let us know. We’re happy to make adjustments to your program to give you the peace of mind you require. If you use your cards internationally or extensively for non-fuel spend, we’ll let you know what adjustments or upgrades are needed to provide you with the most secure payment option available.