After being postponed twice – in 2016 to allow retailers to address challenges with upgrading, and again in 2020 due to the impact of the COVID-19 pandemic – the upcoming Outdoor EMV deadline offers retailers unique opportunities to reduce fraud, protect customer data, offer customers new digital payment options and take market share from competitors.
Here are 5 reasons why retailers should make the switch today:
1. Avoid Fraud Liability
To provide retailers with an incentive to switch their point-of-sale (POS) systems to EMV-certified chip readers, card issuers are shifting liability for unauthorized purchases to non-compliant merchants beginning on the EMV transition deadline of April 17, 2021. This has the potential to create significant financial liability for retailers that can exceed the original investment in EMV equipment over time. In fact, a recent analysis by Mercator Advisory Group estimates that fuel retailers that do not upgrade could face potential costs of $17,315 per site each month and up to $207,780 annually due to this liability shift.
2. Protect Your Customers’ Data
EMV brings many security benefits that protect both retailers and their customers. Since EMV cards store cardholder data on a smart chip, it is more difficult for counterfeiters to exploit that data by making copies. In addition, tokenization of card data by EMV systems enables retailers to store a token rather than the actual cardholder data – rendering that information useless should unauthorized parties gain access. And finally, encryption of cardholder data from the point of the card being tapped or inserted up to the payment gateway ensures that this data is unreadable in the event that it is exposed. This is commonly referred to as point-to-point encryption (P2PE) and is another major benefit of EMV technology.
3. Shifting Customer Preferences for Touchless Payments
As technologies continue to advance, features such as contactless and touchless payments are becoming more popular – especially with more safety-conscious customers seeking to minimize risk or exposure during the COVID-19 pandemic. In fact, according to a survey conducted in September by PYMNTS and PayPal, 26% of customers prefer retailers that accept contactless cards and 57% indicated that the availability of digital payment options impacted their decision of where to shop. Retailers considering the switch to EMV will be rewarded with greater customer loyalty and incremental revenue by making these digital payment options available.
4. Beat the Rush
As the EMV transition deadline nears and demand increases for both EMV payment solutions and technicians to perform installations and maintenance, it will become more difficult for retailers to schedule installations allowing them to meet this deadline. In fact, a recent blog post highlighted the projected surge in demand for service technicians in the US and the potential impact this can have on the ability of retailers to maintain compliance. For those retailers that need a cost-effective, outdoor payment terminal that offers a full range of EMV payment types, there are retrofit options available that allow retailers to keep working pumps, require no repump permits, and require less technicians and time to install
Check out our infographic ® How Retrofit Kits Can Solve for EMV in the US
5. Gaining or Maintaining Competitive Advantage
Retailers that are able to seize the opportunity that the EMV transition represents will improve their bottom line by avoiding fraud liability, build loyalty with existing customers and win over new ones by prioritizing their data security and payment preferences. This creates a distinct advantage in the competitive marketplace that will be difficult for non-EMV compliant retailers to overcome in both the short and long term.
Invenco is a global provider of self-service payment solutions with a range of products including outdoor payment terminals, electronic payment servers, payment switches, and cloud services. Invenco continues to build on its legacy of ground up engineering in security and rugged automation to deliver robust technology solutions to petroleum and other retail segments. Invenco works through its network of partners to deliver geographically optimized versions of its products around the world. Headquartered in Auckland, New Zealand, Invenco also operates offices in Malaysia, US, and UK Contact us today!