EMV Liability Shift – What scenarios is a retailer liable for fraud?

This infographic from Visa explains what liability rests with the retailer or merchant and the card issuer in various payment situations. This document shows how liability may be assessed for:

  • a magnetic stripe card used at a magnetic stripe payment terminal
  • an EMV chip card is used at a traditional magnetic stripe payment terminal
  • an EMV chip card is used at a chip enabled terminal that has been activated by the retailer or merchant

Source: http://www.truemerchant.com/

The date for EMV adoption is October 2015 for in-store point of sale for C-stores and other retailers. For gas pumps (AFD's), EMV adoption and liability shift will occur on October 1, 2017. 


EMVCo exists to facilitate worldwide interoperability and acceptance of secure payment transactions. It accomplishes this by managing and evolving the EMV® Specifications and related testing processes. This work is overseen by EMVCo’s six member organizations—American Express, Discover, JCB, MasterCard, UnionPay, and Visa—and supported by dozens of banks, merchants, processors, vendors, and other industry stakeholders.

How does an EMV Chip Card work?

A useful infographic from Visa that explains how EMV cards are designed and how EMV processing works.

Mastercard EMV Roadmap

MasterCard has developed a roadmap focused on advancing the U.S. electronic payments system while providing each customer flexibility to manage technology implementation that advances their business goals. Information of interest to C-store owners related to gas pumps, point of sale (POS), and other payment products.

Preparing for the EMV Liability Shift – Whitepaper from Verifone

Incentives are laying the path for U.S. adoption of the EMV chip card standard, in use in most developed countries. More than 575 million chip-enabled cards are expected to be in circulation by the end of 2014 and fraud costs are scheduled to shift to merchants and acquirers that don’t meet EMV requirements.


This article in Fuel Marketer News by Corey Henriksen of Acquisition and Refinance Capital, Inc., provides a good overview of how to get the best financing possible for your fueling equipment including gas pumps or for a C-store acquisition.

As a general rule, any lender, whether it’s a large national institution or your brother-in-law, will look to the following guidelines:

  • Be able to show that you have seasoned experience in operating a downstream retail petroleum business.
  • Be able to prove up sufficient cash flow to cover the annual debt service (expressed as a debt coverage ratio; usually 1.25 to 1 for gas stations).
  • Be able to show sufficient asset value of the collateral for the loan (expressed as an LTV ratio; anywhere from 60% to 85% for gas stations).

Getting Good Rates and Good Terms on Financing

By Corey Henriksen, Fuel Marketer News 

Obtaining good rates and terms for your retail petroleum business is not rocket science, it’s just good common sense (and doing your homework).

Prepare a package that explains your business and focuses on what you want to accomplish in obtaining the financing. Determine what’s important to you, whether it is the rate, term, guarantees, etc. Explain the nuances of your profit centers; i.e., what happens to profit when prices go up and credit card fees increase. Remember, lenders have to understand your business, or they will not lend.

Determine and then place your package in front of the right lenders with regard to the type of financing (equipment vs. real estate) and size of financing (single unit vs. multiunit multi-profit), etc. Trying to fit a square peg in a round hole will only waste your time and effort.

Present a package that addresses each specific lender’s requirements. Do your homework. Research what the lender requires. Address those requirements in your presentation. Give the information to them in an easily manageable format. Prove it up with good books and records.

Competition is good. Present your package to a number of qualified lenders. Similarly, situated lenders have different appetites and requirements, costs of funds, etc. Lenders are in the business to lend. They will start sharpening their pencils, especially when they realize they are in a beauty contest.

The full article is available at Fuel Marketer News.


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