June 9th, 2020 - Payments, POS
By Brian DuCharme, Vice President of Product Management, TNS Payment Solutions
When you move into a new home, some of the first things you install likely include fire extinguishers, smoke detectors and a security system. When you change jobs, getting on your employer’s health plan is probably one of your first moves. When you buy a new vehicle, you are required to insure it against risk or theft, maybe even add an extended warranty against failures or defects
Why do we bother to do any of these things? It’s for our own protection — because all of these safeguards reduce our own liability and bring us peace of mind that, should a worst-case scenario occur, we won’t be completely on the hook financially. In some respect, this is how I personally think about adding EMV CHIP readers to the forecourt. It is for the protection of you, your customers and your bottom line.
Business owners, including convenience retailers, also take steps to reduce liability and risk for the same reasons. While it’s highly likely owners and operators already possess protections like business insurance and closed-circuit cameras, not everyone has upgraded to EMV CHIP reading terminals at automated fuel dispensers (AFDs).
If you’re still waiting to start don’t delay any longer. And if you have kicked off your project, congrats! Even though all the global payment networks have extended the deadline for EMV liability shift to April 2021, any retailer that hasn’t upgraded yet is risking numerous issues, including greater risk of fraud, higher costs due to increased liability, potential loss of customer trust in the event of fraudulent transactions on their cards and most of all, confusion for the customer. Yes, confusion. Some places have chip readers, some don’t. Just last night on the way home from our office here in Tampa I went to buy gas and it was unclear to me if the reader was CHIP ready. After a few failed dips I almost left for another station.
According to Payments Journal, this is the “core issue” related to EMV at the pump: “Most consumers go to gas stations, most still use plastic to pay, and non-EMV card readers are highly susceptible to fraud. Thus, it’s critically important that gas stations prepare to fully implement EMV capabilities at their pumps and convenience stores, especially because they will soon be the ones held liable for card fraud that occurs.”
EMV is Essential
US-based fuel and convenience retailers and their AFDs are some of the last merchants to fully incorporate EMV technology — which uses an embedded microchip to provide an extra layer of data security for credit and debit cards — into their point-of-sale (POS) systems, because the labor and costs associated with the technology upgrade at these retailers can be expensive.
Yet incorporating EMV technology at the pump can significantly reduce payment card “skimming” and other payment frauds — and once the EMV acceptance deadline passes, the liability for fraudulent transactions and counterfeit chargebacks passes entirely to owners and operators.
This is not a position any business owner wants to be in.
While there’s no question upgrading AFD equipment involves a significant investment, the inevitable liability shift means the business looking to avoid the fraud cost and brand risk will incur the costs at some point anyway, whether now or in early 2021. The earlier retailers address this, the sooner you can rest assured the project is completed ahead of deadline while gaining EMV protection at the pump.
To ensure transactions are secure and protected against fraud, retailers moving to EMV need to deploy certified Managed Network Service Provider (MNSP) network solutions like TNSLink, which securely connects purchases at the pumps and indoor point-of-sale solutions to a consumer’s payment card via the payment acquirers using the latest technology.
TNS’ end-to-end MNSP solution supports the hardware being installed at the pump while providing the highest levels of payment security, always-on connectivity, and 24/7/365 monitoring for not only the hardware, but also the network connection.
TNS also is certified as an MNSP by Gilbarco and Verifone, and is a Level 1 PCI DSS certified service provider. Retailers can use TNSLink to connect their payment terminals securely and cost-effectively to TNS’ global payments community to support multiple payment applications, improve uptime and increase productivity. TNSLink leverages TNS’ global presence and established connectivity with more than 400 host payments systems, delivering secure and reliable managed services, supported 24/7/365 from three global Network Operating Centers.
Adding TNS’ solution will give gas station owners and operators — and customers — the speed, peace of mind and convenience they demand. Don’t keep the door open for fraud and increased liability — upgrade your pumps today.
Brian is Vice President of Product Management for TNS’ FinTech Payments business and has over 20 years’ experience in the telecom and payments industries. At TNS, he leads a diverse global team and is responsible for driving product innovation for safer, more secure commerce around the world.