When the deadline for gas station owners to become EMV chip compliant was extended from October 2017 to October 2020, many gas station owners breathed a heavy sigh of relief. It meant that they could put off the inevitable for even longer. Visit: https://www.patriotcapitalcorp.com

1. Some Gas Station Owners Don’t Want EMV –
And the Dangers of Waiting to Comply
When the deadline for gas station owners to become EMV chip compliant was extended from
October 2017 to October 2020, many gas station owners breathed a heavy sigh of relief. It meant
that they could put off the inevitable for even longer.
According to Convenience Store News, 44 percent of U.S. businesses have made the switch to
EMV. Many of the gas station owners who did not want to wait until the 2020 deadline said the
risk of exposing their customers to potential fraudsters was too great. Others saw this as an
opportunity to draw business away from stations with outdated equipment and unsecure payment
processing.
Gas station owners face a unique set of challenges that may serve as roadblocks when deciding
whether to take the plunge and convert to EMV compliance now or later, including:
 The Cost – The cost of upgrading gasoline pumps to comply with EMV chip-based
payment cards has many gasoline retailers putting off the update for as long as possible.
The cost could be between $6,000 and $10,000 per pump, according to the National
Association of Convenience Stores. However, the cost of waiting might be even higher.
As we get closer to the 2020 deadline, there will be more demand to upgrade. Due to
higher demand, there will be a backlog in installations, and conversions may become
even more expensive.
 “We Have Time” Mentality – The deadline for EMV compliance is October 1, 2020. It
might seem like there is plenty of time to become compliant, but the reality is that
upgrading equipment is a time-consuming, laborious process. It is not as easy as plugging
in a new terminal – there is significant regulatory work involved, and a limited number of
technicians who can audit and certify the deployment process.
 Uncertain Financial Liability – Some gas station owners might think that they aren’t
taking on a large financial risk by waiting to convert their pumps. However, the reality is
that fueling stations are a prime target. With frequency of use and criminals being able to
recover stolen data undetected, non-upgraded sites bare a huge financial risk. Not to
mention that liability will be passed from credit card companies to retailers if their pumps
are not EMV-compliant. Starting on October 1, 2020, retailers unable to process EMV
cards at the pump will be liable for fraudulent transactions and could be hit with
chargebacks.
The U.S. Secret Service is conducting an ongoing campaign to protect consumers from credit
card theft at gas stations across the country due to a rise in skimmers being installed at gas
stations. As more retailers convert, criminals target sites that aren’t EMV-compliant, such as gas

2. stations. The easy access to credit card terminals at the pump makes it easy for criminals to
install skimmers. According to Matthew O’Neill, Assistant to the Special Agent in Charge for
the U.S. Secret Service, most of the criminals are part of transnational organized groups from
different regions of the world that will specialize in their own, specific type of skimming.
The Florida Department of Agriculture found theft devices at 689 stations so far in 2018, despite
enforcement from station owners and law officers, according to the NACS. That’s more credit
card skimmers found in 10 months than were found in all of 2017. Similar trends are occurring
throughout the country.
If you are a gas station owner and you haven’t converted your pumps, it’s time to consider
whether delaying the conversion is unknowingly putting your business at risk, especially if you
are in a high-fraud area. You also don’t want to lose security-conscious customers who seek out
EMV-compliant fueling sites in order to protect their credit card information.
To calculate the incremental profit your business could capture today rather than waiting, the
“How Much Will Waiting Cost” calculator allows to you to enter your site-specific information
to see what your return could be.
If you want to learn more, or if you need gas pump, POS or other C-store equipment financing,
please contact Patriot Capital at 404-255-1770.
Disclaimer:
Cadence Bank, N.A. 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.