provides an additional layer of security and maximizes the
chip’s value. However, in the United States, MasterCard and
Visa have generally allowed card issuers to decide whether
they will require a PIN. “Chip-without-PIN” cards offer more
security than simple magnetic-strip cards, but they are less
secure than they could be.
EMV cards issued in the U.S. also typically still include a
magnetic strip as a backup. So, if the transaction is conducted
with the magnetic strip rather than the embedded chip,
nothing has changed.
3. Does the Pain Justify the Gain?
In our industry, EMV payment devices are increasingly
common inside the store. And dispenser manufacturers also
are launching pay-at-the-pump EMV solutions in the United
States. So the technology will be there for those who want to
meet the October 1, 2017 forecourt deadline.
But at what cost? Gray Taylor, executive director of the
Petroleum Convenience Alliance for Technology Standards
(PCATS), has been quoted as saying retailers in our industry
will have to spend up to $4 billion to swap out an estimated
800,000 POS systems.
For an individual marketer, the conversion cost inside the
store is probably measured in hundreds of dollars. The costs
in the forecourt will be a different story, with an investment
of many thousands and perhaps tens of thousands of dollars
for even a relatively small facility. And as with other payment-system upgrades in the recent past, the new equipment won’t