U.S. Automated Fuel Dispenser EMV Liability Shift Delayed

EMV Liability Shift Delayed

New Visa Fraud Monitoring Program for Automated Fuel Dispensers

Visa has been working with merchants, acquirers, and fuel-industry providers to support migration to the more secure EMV technology. However, due to challenges with EMV Automated Fuel Dispensers (AFD) solution readiness, Visa is delaying the U.S. domestic AFD EMV liability shift date to 1 October 2020.  To help mitigate any increases in counterfeit fraud at AFDs in the interim, Visa will expand its existing Visa Fraud Monitoring Program (VFMP) to include a new U.S. AFD-specific fraud-monitoring program. The expanded program will have unique thresholds based on U.S. AFD counterfeit fraud trends. For AFD locations that exceed the defined thresholds and reach enforcement status, issuers will receive chargeback recovery rights for reported counterfeit fraud. The new AFD fraud-monitoring program will begin in July 2017, identifying fraud in June 2017, the previous month.

EMV Liability Shift:

U.S. Automated Fuel Dispenser EMV Liability Shift Delayed VFMP-AFD Program

Program Basics

The VFMP-AFD program applies only to U.S. domestic transactions at AFDs (Merchant Category Code 5542). The VFMP will continue to operate as currently defined in the Visa Rules (ID#: 0029288). Visa will notify U.S. acquirers of all the AFD merchant outlets in their portfolios, which are identified in the VFMP-AFD through the Visa Risk Performance Tracking (VRPT) tool available on Visa Online. Just as with the existing VFMP, the VFMP-AFD will review the previous calendar month’s domestic counterfeit fraud dollar totals and the domestic counterfeit fraud-to-sales ratio. However, the thresholds for VFMP-AFD are specific for and apply only to U.S. domestic AFD transactions.

Standard Program

U.S. AFD merchant outlets will be identified on a monthly basis if they meet or exceed the program’s “standard” thresholds for counterfeit fraud activity in the previous calendar month, as follows:

Excessive Fraud Program

U.S. AFD merchant outlets will be identified on a monthly basis if they meet or exceed the program’s “excessive” thresholds for counterfeit fraud activity in the previous calendar month, as follows:

U.S. Automated Fuel Dispenser EMV Liability Shift Delayed

ACQUIRER ACTIONS / PROVISIONS BY PROGRAM MONTH

Program Month 1: Notification (e.g., July 2017)

Program Months 2-4: Workout Period (e.g., August through October 2017)

Enforcement Period: Months 5+ (e.g., November 2017 onward)

Note: Member Appeal Rights do not apply to the release of Reason Code 93 chargebacks.

VFMP-AFD Excessive Fraud Program Timeline

ACQUIRER ACTIONS / PROVISIONS BY PROGRAM MONTH

Program Month 1: Counterfeit Liability (e.g., July 2017)

The VFMP-AFD Excessive Fraud Program timeline differs from the Standard Program Timeline in that merchant locations will be subject to Reason Code 93 chargebacks for counterfeit fraud immediately, in Month 1. The acquirer will not be subject to non-compliance assessments. The Excessive Fraud Program will begin in November 2017 (identifying fraud in October 2017).

Program Workout Period (through remediation)

Once a U.S. AFD merchant outlet exceeds the Excessive Fraud Program threshold, that merchant will remain on the Excessive Fraud Program timeline until it remediates out of the program altogether. In addition:

VFMP-AFD Program Duration

The VFMP-AFD program is scheduled to end in October 2020 for fraud identified in September 2020. ​

After the VFMP-AFD terminates, AFDs will revert to monitoring under the terms of the existing VFMP as defined in the Visa Rules (ID#: 0029288). The existing VFMP remains unchanged and will continue to monitor fraud during the extension period.

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to top