Visa has announced a three-year postponement of the liability shift date for self-serve gas pumps to be certified to process smart chip card transactions. Instead of the original date of Oct. 1, 2017, it is now Oct. 1, 2020, according to an announcement on Visa's website.
The company acknowledged that "five years after announcing our liability shift, there are still issues with a sufficient supply of regulatory-compliant EMV [Europay MasterCard Visa-standard] hardware and software to enable most upgrades by 2017." Stating that "fraud rates at fuel pumps are relatively low -- approximately 1.3 percent of total U.S. payment fraud," the company explained that it is moving the liability shift date and that, "We believe we have reached a balanced conclusion for providing needed, additional time to merchants while continuing to push forward with the migration to chip." Visa said it will monitor payment trends at the pump to help gas-station operators and card-issuing banks prevent fraud during the interim period.
The decision to delay the deadline is the second time in a month that Visa has announced moves to appease relationships with merchants after years of tension between the two groups fueled by arguments over fees. Last week, the firm said t would revise its rules for using the new chip technology for debit-card transactions after some retailers claimed the requirements inhibited competition.