Conexxus In the News

While many have used the five and a half years since the mandate was issued to install EMV readers or are in the process of complying, 31% of c-stores have not upgraded a single pump, according to the Fall 2020 Conexxus EMV Survey. With the deadline fast approaching, here are the nuts and bolts of the new liability rules, how to achieve compliance and how to use the EMV upgrade to boost value and even revenue.

The migration to chip at the pump is also still top of mind for the payments industry. According to the September 2020 Conexxus EMV Preparedness Survey, 14% of gas station owners said that all of their sites were already compliant. While 43% of smaller and independent gas stations with one to 10 sites have no EMV terminals installed yet, no survey respondents said they expected to have zero sites compliant by the liability shift date, April 2021. 

The mission of the Conexxus Forecourt Payment Terminal Group is to develop and adopt standards to facilitate the integration of payment terminals on the forecourt.  “The released Conexxus forecourt OPT standard is a clear example of how the industry can come together to quickly solve industry issues through contributing the base data standards as Dover Fueling Solutions has done, and Conexxus working groups dedicated to getting these enabling standards in the field,” said Conexxus Executive Director Gray Taylor. 

To date, Invenco has installed EMV pay-at-pump retrofits with several retailers using various store systems leveraging the Conexxus Forecourt Payment Terminal 1.0 Protocol. These implementations enabled a fast (around an hour per pump) and cost-effective upgrade to outdoor EMV, especially as the Conexxus protocol will be used with the Invenco-i2 offering, which gets retailers to outdoor EMV for a small up-front installation fee followed by a monthly rental contract from $120 per pump per month. In addition, the standardized communication protocol in combination with an open platform system positions these sites for easier implementations of future enhanced digital capabilities.

The program will utilize the store POS to calculate age and validate IDs, while integrating with the retailer’s loyalty program. It also can collect information about an individual’s purchases, which could help authorities curtail “social selling”—the act of an adult purchasing numerous age-restricted products and then reselling them to teens. Best of all, the program will be free of charge.

 What lessons can retailers struggling with innovation glean from leading retailers?  Although some tactics are the byproduct of unique competitive advantages, there are commonalities across many leading convenience retailers.  Eg. Source standards-based solutions from flexible, open solution providers. Both internally and externally, leaders are demanding that current and potential technology solutions adhere to industry standards (i.e. Conexxus and International Forecourt Standards Forum), as standards reduce implementation barriers and improve interchangeability of solutions.  

Although COVID-19 has exasperated challenges for operators, it has also served as a catalyst for contactless EMV at the forecourt, with a majority of operators (81 percent) saying they have implemented or plan to implement the technology.

Specifically, this means after the deadline, any fuel retailer who has not updated their AFDs to support EMV-certified chip readers will automatically lose a chargeback inquiry and be subject to additional compliance fees.  It can also be argued that savvy fraudsters will begin to target locations that haven't enabled EMV, because they know they have a better shot at getting away with fraud.

As the convenience channel, the overall retail industry and the world get turned upside down, what happens in the next generation of stores? What are the architecture considerations? What are the operational considerations? Where are the trends going, especially given "the new normal" as a result of COVID-19?

“Cost and justification of the cost are still issues,” Toth says. “With the economic uncertainty right now, a lot of c-stores are unsure how they will pay for EMV and small c-store operators don’t have the profits to put into it.” Toth adds that Conexxus and acquirers are making headway when it comes to educating c-store operators about cost justification by explaining the impact fraud will have on their business if they are not EMV-compliant. That has helped many c-store chains prioritize which stations to make EMV-complaint, such as those in high-risk areas, Toth says.....