Are Gas Station Owners Pushing Back on EMV Upgrades?

When the EMV compliant deadline for gas station and c-store owners was extended from 2017 to 2020, there were two reactions: those who were already compliant saw this as an opportunity to capture sales from customers seeking stations with upgraded, secure equipment. Many of those who had not yet upgraded their equipment saw this as an opportunity to delay compliance even longer. 

Some gas station and c-store owners may delay compliance believing that loyal customers won’t leave them. Others erroneously assume that upgraded equipment won’t contribute to the profitability of their businesses.

The reality is that if you aren’t compliant, you are probably losing business to compliant competitors. There are currently more than 2 million U.S. retail locations accepting EMV, and two-thirds of Visa cards are chip-enabled. The number of EMV-capable gas pumps will exceed 50 percent by the end of 2018. 

According to the National Association of Convenience Stores, counterfeit fraud at gasoline stations reaches around $400 million annually. Gas station owners who have not implemented EMV are essentially extending an open invitation to fraudsters and thieves to target their businesses. 

Why Should Gas Stations and C-Stores Upgrade Now?

There are a number of reasons to avoid delaying EMV compliance:

•    EMV pumps have secure pump processing that prevents fraudsters from collecting credit card information
•    EMV pumps reduce the risk of fuel theft and meter tampering
•    New pumps include entertainment and promotional features that drive customers into your store to make additional purchases
•    Upgraded pumps enhance the site’s image and better protect your customers 

If you are a gas station or c-store owner and you’re still on the fence about whether you should upgrade now or wait until absolutely necessary, consider this important fact: approximately 70 percent of U.S. credit cardholders now carry an EMV chip card, and that number will continue to grow. The reality is that replacing old fuel pumps is often a time-consuming process due to regulatory requirements and required testing and certification, but waiting could result in penalties due to excessive fraud-to-sales ratios and chargebacks. Perhaps most importantly, your customers’ data – and your reputation – is at risk.

Our “How Much Will Waiting Cost” calculator helps to calculate the incremental profit your business could capture today rather than waiting by allowing you to enter your site-specific information to see what your return could be. 

If you’d like to learn more, or if you’d like c-store equipment financing, please contact Patriot Capital at 404-255-1770. 


State Bank and Trust Company d/b/a Patriot Capital does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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