Less Than Half of Major Fuel Merchants Meet Extended EMV Deadline, According to New ACI Worldwide Data
April 19 2021 - 8:00AM
Business Wire
COVID-19 pandemic continues to create major
challenges for fuel merchants nationwide in meeting April liability
shift deadline
New data from ACI Worldwide (NASDAQ: ACIW), a leading global
provider of real-time digital payment software and solutions, shows
that as of April 17, 2021 — the extended EMV liability shift
deadline — less than half (48%) of fuel merchants will meet EMV
automated fuel dispenser (AFD) compliance mandates. As of the
extended deadline, the liability for fraud will now shift from card
issuers to fuel merchants.
ACI surveyed fuel merchants that collectively represent 45,000
gas stations nationwide — including major oil companies, grocers
and convenience stores. The data showed that only 50 percent of
fuel merchants who were not fully implemented expect to be EMV
compliant by the end of 2021.
“Although previously protected from fraud losses, merchants will
now bear the brunt of fraud overnight,” said Debbie Guerra,
executive vice president, ACI Worldwide. “While EMV compliance is a
major undertaking, and one that requires a significant capital
investment, there is no doubt that the pandemic also played a big
role in some fuel merchants’ inability to meet the April deadline.
With overall diminished resources due to the pandemic and slow
testing and certification, which is typically done in person,
merchants have certainly been challenged.”
The ACI research also showed fuel merchants’ increased interest
in implementing important security and fraud prevention measures
such as point-to-point encryption (52%) and tokenization (39%). In
ACI’s July 2020 survey, 37 percent were considering point-to-point
encryption and 26 percent were considering tokenization.
“Fortunately, for fuel merchants and their customers, the
upgrades required for EMV at the dispenser will increase
point-to-point encryption technology adoption. The additional
bandwidth will allow merchants to secure all of their payments
upfront,” Guerra continued.
Key Findings:
EMV readiness by April 17 deadline:
- 48 percent of major fuel and convenience merchants have fully
implemented EMV across all their gas stations.
- 26 percent have more than three quarters of their fuel stations
fully upgraded.
- 22 percent currently have under half of their fuel stations
fully upgraded.
- 4 percent have between half and three quarters of their
stations fully upgraded.
Expected completion of EMV compliance:
- Of those that are not fully upgraded (52%):
- 25 percent of major fuel and convenience merchants expect to be
fully compliant by the second quarter of 2021.
- An additional 25 percent of major fuel and convenience
merchants expect to be fully compliant by the end of 2021.
- 50 percent are unsure of when they will be fully
compliant.
Fraud and security:
- More (52%) fuel and convenience merchants are considering
point-to-point encryption this year compared to last year
(37%).
- 39 percent are considering tokenization in 2021, an increase
compared to 26 percent in 2020.
Digital payments and additional improvements:
- 91 percent of fuel merchants plan to implement contactless
payments in 2021, an increase compared to 85 percent that were
planning to do so in 2020.
- 78 percent are considering implementing mobile payment options
in 2021, an increase compared to 70 percent in 2020.
- 48 percent are evaluating how to integrate loyalty initiatives
at the fuel dispenser, a drop compared to 67 percent that were
considering it in 2020.
See the EMV Readiness Survey Infographic for more
information.
About ACI Worldwide
ACI Worldwide is a global software company that provides
mission-critical real-time payment solutions to corporations.
Customers use our proven, scalable and secure solutions to process
and manage digital payments, enable omni-commerce payments, present
and process bill payments, and manage fraud and risk. We combine
our global footprint with local presence to drive the real-time
digital transformation of payments and commerce.
© Copyright ACI Worldwide, Inc. 2021
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and
all ACI product/solution names are trademarks or registered
trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in
the United States, other countries or both. Other parties’
trademarks referenced are the property of their respective
owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20210419005286/en/
Media Dan Ring dan.ring@aciworldwide.com 781-370-3600
Nidhi Alberti Nidhi.alberti@aciworldwide.com 781-370-3600
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