EuroPay, MasterCard, and Visa (EMV) Compliance / Opportunity

ABC believes that the cost of equipment (POS Systems, Pin Pads and Fuel Dispensers) and related software upgrades needed to comply with the new EMV requirements may total approximately $5 billion for the entire retail petroleum industry alone. This provides a significant opportunity for ABC to drive growth in volume in the near term.

The Payment Networks’ Liability Shift associated with EMV is due to take effect in the United States inside retail locations across the country by October 1, 2015. October 2017 is the date of the Payment Networks’ Liability Shift for all credit card and debit card processing terminals outside the store, or in the forecourt of retail petroleum location.

The main driver behind the EMV migration is card-related financial fraud. Despite the best efforts of global law enforcement agencies, global losses have risen steadily, increasing pressure to find a global solution.

Annual costs of card fraud in the U.S. alone are estimated at $8.6 billion per year. Experts believe that figure will rise to $10 billion or higher by 2015, especially if the U.S. does not make significant progress with chip card adoption. If ever there was a time to ensure compliance with a global chip-compatibility strategy that reduces fraud, it’s now. This is especially true in light of the fact that many countries are now considering banning traditional magnetic stripe cards, a technology standard in use for over 40 years.

One key component in the EMV migration is its accompanying liability shift. This liability shift means that those issuers and merchants using non-EMV compliant devices that choose to accept transactions made with EMV-compliant cards assume liability for any and all transactions that are found to be fraudulent.