EMV Deadline Delayed for Fuel Dispensers
VP Launches Lube Line, Branding Stations

EMV DEADLINE DELAYED FOR FUEL DISPENSERS

SAN FRANCISCO, CA. — As fuel retailers scrambled to meet an October 1, 2017 deadline to have EMV chip reader equipment installed in their fuel dispensers, the major U.S. credit card companies announced a delay of the activation deadline until 2020.

Service station owners and operators breathed a sigh of relief as the new deadlines were announced. Retailers had been having difficulty scheduling service technicians to install the new equipment, especially in more rural areas of the West. Retailers were also relieved to have additional time to pay for the new equipment which is expected to cost billions of dollars to the industry. And equipment suppliers, many of whom were having difficulty securing enough equipment to convert every dispenser in the United States, were appreciative to have more time to fill customer orders.

Under the deadline announced by the banks in 2012, fuel retailers had until October 1 of this year to accept EMV chip cards at automatic fuel dispensers. If the dispensers were not upgraded, retailers would be liable for any credit card fraud that occurred at their stations.

In moving the deadline to 2020, the credit card companies acknowledged that the service station industry is "unique to the U.S. because of the complexity of the environment and regulatory requirements that do not exist anywhere else."

Announcing the change, Visa Inc., stated, "We knew that the automated fuel dispensers/pumps segment would need more time to upgrade to chip because of the complicated infrastructure and specialized technology required for fuel pumps. For instance, in some cases, older pumps may need to be replaced before adding chip readers, requiring specialized vendors and breaking into concrete. Furthermore, five years after announcing our liability shift, there are still issues with a sufficient supply of regulatory-compliant EMV hardware and software to enable most upgrades by 2017."

Visa also noted that they had been studying the issue of credit card fraud at the pump and found "that fraud rates at fuel pumps are relatively low — approximately 1.3 percent of total U.S. payment fraud," making it less pressing for a fast adoption of the new technology.

Visa and MasterCard announced the EMV delay at the beginning of December 2016 and American Express followed suit in mid-December.

All three companies reiterated that, with the new deadlines, the EMV fraud liability shift deadline will be activated on October 1, 2020.

VP LAUNCHES LUBE LINE, BRANDING STATIONS

SAN ANTONIO, TX. — VP Racing Fuels has announced plans to expand the company by branding gasoline stations and introducing a new lubricants line.

The lubricants line was announced in November and "includes professional grade racing oils SAE 0W-20, SAE 5W-30, SAE 10W-40 and SAE 15W-50," according to Richard Glandy of VP, San Antonio, TX. "Plus, we have oils for classic cars and small racing — plus a high performance line.

"The professional grade is for the professional race car driver," continued Glandy. "We have a very unique chemistry: high zinc, high phosphorous, and friction and viscosity modifiers. It's a very unique product."

The VP lubricants line is being introduced "through the first quarter of 2017" through "select independent lubricant warehouse distributors, race fuel distributors, lubricant package warehouse distribution companies, performance distributors/dealers and retailers."

VP also announced a new retail branding program, looking to add the VP Racing Fuels brand to gasoline stations and convenience stores across the United States.

"VP has been known in the past for our fuels," said Kyle Moose, VP, Murietta, CA. "This year, we're really hitting hard on the lubricants division. We're trying to expand our gas station branding. And we have our own monster truck this year for branding."

Moose added that there are currently "a few dozen gas stations across the West Coast" carrying the VP brand. "It's a growing segment in the West," he noted. "We have 220 nationwide."

Originally published in the February 2017 issue of O&A Marketing News.
Copyright 2017 by KAL Publications Inc.