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December 2, 2016 | Vol. 66, No. 24

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Dear PEI Member:

Early yesterday, Dec. 1, Visa announced on its website that it was extending by three years the deadline for retailers to add EMV processing capability to their fuel dispenser payment systems. Rather than Oct. 1, 2017, retailers now have until Oct. 1, 2020, to avoid the liability shift that will take place if their dispenser payment systems are not upgraded to be chip-card ready. Shortly after Visa’s announcement, Mastercard followed suit, also delaying its chip-card liability shift to Oct. 1, 2020.

In its announcement, Visa noted that when the original 2017 deadline was set, the basic challenges related to dispenser payment systems were well-known: extremely specialized technology, the inability to upgrade some older dispensers, and the fact that some fuel marketers would have to break concrete to install high-bandwidth cabling.

Yesterday’s extension was based on additional, unforeseen factors. According to Visa, “[F]ive years after announcing our liability shift, there are still issues with a sufficient supply of regulatory-compliant EMV hardware and software to enable most upgrades by 2017.”

Visa also noted that its recent analyses have shown that “fraud rates at fuel pumps are relatively low—approximately 1.3 percent of total U.S. payment fraud.”

News of the extension was quickly welcomed by major retailers, fuel retailer groups and their technology partners.

I believe that the card brands have come to understand that these challenges are not of retailer creation, but a result of late specifications, certification complexity and supply chain constraints, rather than a lack of resolve to adopt EMV," said Gray Taylor, executive director of Conexxus, in a statement posted on the NACS website.

With the original deadline looming, PEI distributors and service contractors have been in the unenviable position of trying to balance an unprecedented amount of work, an unachievable industry deadline, hardware and software that were not quite ready, and an industry-wide shortage of qualified service technicians. No wonder, then, that in a survey presented at the 2016 PEI Convention, members labeled EMV work as both their greatest area of opportunity and their greatest frustration (see Oct. 28, 2016, TL). 

EMV Deadline Delayed

PEI Service & Construction Managers Conference

Groundwater Contamination Alleged in Rhode Island




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It will take some time to sort out the near- and long-term effects of the deadline extension on PEI members, but observations gathered from PEI officers and directors during the past 24 hours show a mostly positive outlook. Here’s a sampling:

  • “I believe this will help our industry and most PEI members. Our customers missed the October 2015 inside-the-store deadline due to the lack of necessary software—and there was no way the industry could meet the October 2017 dispenser payment system deadline. The software required to accept EMV cards at the dispenser still is not completely ready.”
  • “This extension will slow many purchasing decisions, but it also will protect our customers from the liability they otherwise would have incurred when they missed the 2017 deadline.”
  • “I believe the rollback will free up cash for ‘new-to-the-industry’ builds and remodeling projects that retailers had been forced to put on hold so they could fund the 2017 EMV rollout.”
  • “Canada also had an 11th-hour postponement of liability shift at the pump by Visa and Mastercard—although for only two years, not three. As in the U.S., dispenser hardware was mostly EMV-ready, but equipment and acquirer network software were not. The delay did not cause implementation to come to a halt. At the time, only 21 percent of sites had installed chip-card reader hardware on dispensers. In the first year following the postponement, about 14 percent more were completed. That was followed by another 14 percent in year two and 18 percent more in year three. Although many sites still missed the second deadline, more than 90 percent of fuel retailers eventually became fully EMV-enabled at the dispenser.”
  • “Our larger customers have been planning around the original deadline, knowing that at least some of their sites would not be ready by October 2017. Despite the extension, I expect installation of equipment already delivered or soon to be shipped will stay on schedule. However, there will likely be a slowdown with other upgrades.”
  • “I believe this will be good news for the industry, overall. Operators will have more breathing room, and the scramble by PEI distributors and contractors to bring in qualified technicians to meet the crunch will ease a bit.”
  • “I wonder if the EMV delay will give e-pay technologies a chance to gain a stronger foothold in the pay-at-the-pump space. From my personal perspective, as well as that of my Millennial kids and their friends, any smartphone or Bluetooth payment solution that means I don’t need a physical credit card is preferable. Having said that, it probably isn’t an either/or situation but, rather both/and.” 

As a result of yesterday’s announcements, the EMV world looks a little different today. We will continue to track all the important developments and keep PEI members informed. 

The 2017 PEI Service & Construction Managers Conference will be held May 11-13, 2017, at The Westin Indianapolis hotel in Indianapolis, Indiana. If you are responsible for your firm's service or construction department, mark your calendar and save the dates! This is always one of PEI’s most popular and most highly rated events. Conference registration, sponsorship details and hotel reservation information will be available soon.

Rhode Island has sued 34 oil companies, alleging that their prior use of methyl tertiary butyl ether (MTBE) has resulted in groundwater contamination at various locations in the state. The complaint alleges that although Rhode Island banned the use of MTBE in 2007, testing and monitoring over the past five years has revealed the presence of MTBE in groundwater.
“Sultan Petroleum of Illinois and its company president have been ordered to pay over $1.3 million in civil fines and penalties for failing to remove four abandoned underground storage tanks (USTs) from an abandoned gas station in the town of DeKalb, according to an August 16 announcement from the office of the state fire marshal for Illinois.”—Underground Storage Tank newsletter (November 2016)

Tait Environmental Services
has promoted Erin Langford to director of operations for Southern California. Langford has been with Tait for 12 years, working on testing programs and repair projects. Eric Hammer also has been appointed senior project manager for fueling and repair jobs at the company’s Richardson, Texas, office. Hammer brings more than 20 years of industry experience to the Tait team.
Bennett Pump Company has appointed George Slater director of clean fueling products. He will be responsible for managing the global sales effort for Bennett’s hydrogen and natural gas dispensing products. The company also has named Nels Walker regional sales manager for the southeastern U.S. Walker, who has long been involved in the petroleum industry, will be working with distributors and other customers. 

Indiana installation contractor.
  Ridge Petroleum Contractors Inc., P. O. Box 2249, Muncie, IN 47307, has applied for service and construction division membership. Amanda Ridge is office administrator for the firm, which was established in 1990. The company installs underground storage tank systems. Sponsored for PEI membership by Glen Corkill, SourceIL, Addison, Illinois. www.ridgecorporation.com


  • Jason Cole, Ed Staub and Sons Petroleum, Klamath Falls, OR (O&E)
  • Alex Dodard, Hertz Corporation, Estero, FL (O&E)
  • Eric R. Jones, Rio Colorado Development, San Luis, AZ (O&E)
  • Rajesh Khwakhali,  Twin Star Energy, LLC, Denver, CO (O&E)
  • Chris Ogonowski, Cumberland Farms, Westborough, MA (O&E)


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© 2016
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Richard C. Long, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.