Blog Post
The Shift in U.S. Fuel Fraud Liability
By Lindsay Wood
February 27, 2020
You know the chip-card readers you see at grocery, clothing and other consumer good retail locatins? In the U.S., soon they will pop up in greater numbers at your local fuel station.
Chip Card Readers and Fuel
On October 1, 2020, fuel stations must upgrade their pumps to EMV (Europay, Mastercard, Visa) chip card readers in order to avoid being held responsible for any potential counterfeit fraud
Magnetic stripe card readers transmit the full account information for each debit and credit card used at the pump. When a skimming device is installed, it allows bad actors to steal personal financial information and spend counterfeit fraud dollars.
To date, card-issuing banks have been liable for this type of fraudulent use. However, on October 1 the liability shifts to the fuel station retailers. To limit fraud, fuel stations will upgrade their point-of-sale systems to include chip-card readers. Instead of relaying the account information, these systems transmit a unique code that can’t be used again.
From September 2015 to December 2018 counterfeit fraud dollars has dropped 76% on merchants who’ve completed the chip upgrade, according to Visa.
How Will Chip Card Readers At The Fuel Pump Impact Your Fleet?
According to reports, there is a shortage of chip-card readers and the necessary software. To limit their exposure to fraudulent activity, the fuel station owner may require drivers to enter the station to pay for fuel as chip-card readers are often available inside. For some fleets, the extra time it takes to go into the station may not be a huge productivity drain. But for other service fleets where time is closely monitored, this may impact metrics.
Wheels is working closely with our fuel partners on converting to chip cards. If you’d like to help limit fraud after chip cards have been issued, you can encourage drivers to fill up at stations where chip readers are installed or pay inside the store. Additionally, you can disseminate information on how to spot and avoid card skimmers.
What are your thoughts on this shift in liability? Share your thoughts at [email protected].