Mastercard Agrees to EMV Delay, Announces New Fraud & Security Tools

PURCHASE, N.Y. — Mastercard joined American Express, Discover and Visa in pushing back the deadline for the EMV liability shift at the pump, but took it a step further.

The Purchase-based financial network also unveiled a new consumer protection program to address the fraud vulnerabilities on the forecourt at fuel pumps terminals that have yet to be upgraded.

Mastercard rolled out the program as it delays the EMV automatic fuel dispenser (AFD) to April 16, 2021. Many retailers and associations, including NACS, have urged the four major financial networks to push back the date from October 2020 as many fuel retailers struggle with implementation challenges brought on by the COVID-19 pandemic, as Convenience Store News previously reported.

According to the company, fraud has been migrating to AFDs at an accelerated pace, with 17 percent of all U.S. card present fraud losses reported to Mastercard occurring through transactions at these merchants as of the fourth quarter of 2019.

The enhanced consumer protection program provides the merchant and issuing community with tools to help them navigate the heightened risk fraud is presenting.

"Many fuel companies have made the shift to a safer and more secure EMV environment, and we applaud them for doing so. However, we also recognize and respect the complexities to upgrade to safer and more secure EMV transactions at fuel dispensers over the next few months," said Kush Saxena, executive vice president, U.S. Merchants and Acceptance, Mastercard. "The new program we are putting into the market provides a new and differentiated layer of protection, thus securing consumers and mitigating losses for all parties."

As the company explained, Mastercard-issuing banks will be provided with enhanced data on high-risk fraud transactions at fuel retailers to inform their authorization decisions and stop fraud before it happens. The company's Safety Net and Fraud Rules Manager programs will be enhanced to help them in their decision-making criteria, providing additional protection for their cardholders at fuel pumps.

In addition, the company will give those fuel retailers with high-fraud rates its Merchant Fraud Insights to provide additional details into the transactions and a more comprehensive view into the safety of the purchasing environment at their individual locations.

The company will also develop a compliance program for some fuel merchants who have experienced high fraud at their locations to ensure they have a remediation plan in place to preempt and mitigate fraudulent transactions at their locations.

Additionally, Mastercard will continue to advise those merchants on the importance of upgrading to EMV terminals to further secure the entire ecosystem, thereby minimizing risk to consumers.