April 22, 2021 | Vol. 71, No. 8
|Dear PEI Member:
The long-awaited EMV forecourt deadline is finally here. Effective April 17, U.S. fuel marketers that have not upgraded their dispensers to accept chip card payments are liable for fraudulent transactions on those dispensers.
Survey Says. This week, PEI surveyed our distributor and contractor members to gauge the current state of forecourt upgrades. Our last such survey was conducted six months ago (Oct. 2020).
More than 10% of eligible PEI members participated in this week’s survey. Cumulatively, these members manage EMV upgrades for between 27,500 and 43,000 retail fueling sites. Results show:
by e-mail to the editor, Rick Long at email@example.com
Card Companies and Majors. Although credit card companies resisted last-minute pressure to delay the liability shift (April 6 TulsaLetter), they still could defer enforcement on a case-by-case basis for marketers that demonstrate a good-faith effort to upgrade.
Visa also announced it will automatically enroll non-upgraded fuel marketers in its Visa Transaction Advisor (VTA) program. VTA provides a heightened level of fraud protection, according to VISA:
Each time a credit or debit card is inserted at the pump, Visa analyzes more than 500 pieces of data about the cardholder's account and global fraud trends. Within milliseconds, the tool determines the risk of the transaction and provides a risk score that helps merchants identify transactions with a higher risk of fraud (so they can request additional authentication before gas is pumped). Research shows that when prompted to go inside a store to complete a transaction, most criminals will drive away instead. In other words, Visa Transaction Advisor stops criminals before they can even pick up the pump.
VTA is free to participating marketers the first year.
Major gasoline brands are using carrots and sticks to move marketers toward forecourt upgrades. For example:
What’s Next. Back in 2015 (the original forecourt liability shift deadline), consumers who wanted to buy fuel without cash had only one widely available option: a credit card.
In the years since, new cashless payment technologies have emerged. Contactless credit cards. App-based mobile wallets. In-vehicle payment systems. C-store loyalty card programs. And a completely frictionless Amazon-like “just drive away” experience probably isn’t far off. Each advancement will invite new types of fraud.
Today, EMV technology is the most important tool to protect against fraudulent fuel purchases.
Tomorrow, fuel marketers will be fighting a different battle.
WASHINGTON: 2030 BAN ON NEW GAS VEHICLES
The ban, which awaits Gov. Jay Inslee’s signature, is conditioned on enactment of a vehicle miles traveled tax covering at least 75% of all vehicles registered in the state.
Falling retail prices and lower volumes both contributed to the decline:
PEI YE ‘WINTER’ CONFERENCE REGISTRATION OPENS
“The Indiana House and Senate have each passed a bill that aims to implement additional labeling requirements for fuel pumps that sell E15. Representatives of the ethanol industry are urging Indiana Gov. Eric Holcomb to veto the bill. ... SB 303 would require fuel dispensers that offer E15 to display the statement ‘Attention: E15. Check owner’s manual for compatibility and warranty requirements’ next to the fuel grade selection button, as part of, or in addition to, the label currently required by the U.S. EPA. The bill also includes provisions related to underground storage tanks and establishes new maximum vapor pressure limits for gasoline and gasoline-ethanol blends.” — Ethanol Producer Magazine, April 6
“Shell plans to install 5,000 rapid electric vehicle chargers in Britain by 2025 in a bid [to] confirm a market-leading position in the transition to clean energy. Shell is also proposing an investment in on-street public charging points, building on its relationship with Ubitricity which it acquired in February. The plans form part of Shell’s low-carbon strategy unveiled in February which will see more than 30,000 Shell Recharge charge points by 2025.” ERPEC News, April 15
“CarGurus surveyed 1,097 U.S. automobile owners to gauge their views on EVs. Over half of the respondents (52%) say they expect to own an EV in the next 10 years; a figure that’s risen 34% since 2018. …But the survey revealed demand won’t translate into sales unless certain conditions exist. The top ranked condition centered on charging stations, with 65% of respondents saying they will consider an EV ‘if charging stations are available in my area.’ ... Other conditions respondents say will encourage EV adoption include ease in finding replacement parts and batteries (62%); if long-term fuel and maintenance savings outweigh the higher asking prices (56%); available tax incentives and rebates (56%); extended warranties (53%); good expected retail value (51%); cleaner battery production (48%); and ‘if electric vehicles become more mainstream.’ (46%).” — Auto Dealer Today, April 16
“The number of electrified vehicles sold in the United States during the first quarter of the year jumped by more than 80% compared to the same time in 2020, with the sale of hybrid vehicles more than doubling, according to analysis from Cox Automotive and Kelley Blue Book. ... Overall, there were 303,753 electrified vehicles sold in the U.S. during the quarter, with overall vehicle sales totaling 3,907,738. That's compared to 167,966 electrified vehicles and 3,509,299 overall vehicles sold in the first three months of 2020.” — Oil Express Alert, April 19
“Nearly 50 light-duty plug-in electric vehicle models were available in model year (MY) 2020, up from 42 in MY 2019. Plug-in electric vehicles include all-electric vehicles and plug-in hybrid electric vehicles. Over the past decade, the number of plug-in electric models available has increased from 4 in MY 2011 to 48 in MY 2020.” — DOE Vehicle Technologies Office, April 19
PEI MEMBER NEWS
Dover acquired Huntsville, Alabama-based AvaLAN Wireless Systems Inc., a provider of secure wireless and wired ethernet solutions, managed routers, software-as-a-service (SaaS) and cloud-based services. AvaLAN will be part of the Dover Fueling Solutions operating unit.
Fatboy Electric achieved the Diamond level in Associated Builders and Contractor’s STEP Safety Management System for the third consecutive year. Diamond is the highest level of recognition in the program, which measures 25 key safety processes and policies.
Franklin Fueling Systems acquired the product line assets of electric control product manufacturer Power Integrity Services, a move that will expand Franklin's Total System Solution.
Leighton O’Brien named Clay Moore senior director of product for its SaaS division. Moore has more than 30 years’ experience in software development, including 13 years in the downstream petroleum industry.
Tuthill appointed John Huff national sales manager for its Fort Wayne distribution sales team. Huff has more than 25 years of experience in industrial products sales.
Vapor Systems Technologies Inc. (VST) appointed R-J Sales & Associates Inc. as its manufacturer representative in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee.
Wildco PES recently opened a branch office in Norcross, Georgia. Key personnel include: Dave Brown, operations manager; Frank Carson, service director; and Mike Lynch, regional sales representative.
Montana service company. Advanced Environmental Technology, P.O. Box 1630, Missoula, MT 59806, applied for service and construction division membership. Keith Broere is the owner and director of operations for the firm, which was established in 1992. Advanced Environmental Technology supports fuel tank installations and removals with field analytical and tank cleaning services. Sponsored for PEI membership by Jozef Crumley, Keneco Petroleum Equipment, Great Falls, Montana.
Colorado advisory firm. Capstone Headwaters, 1225 17th St., Denver, CO 80202, applied for affiliate division membership. Ted Kinsman is managing director for the company, which was established in 2001. Capstone Headwaters advises and consults petroleum equipment industry clients seeking capital for growth and liquidity. Sponsored for PEI membership by Bobby Stenstrom, Stenstrom Petroleum Service Group, Rockford, Illinois. www.capstoneheadwaters.com
Massachusetts manufacturer. Hydro Quip Inc., 108 Pond St., Seekonk, MA 02771, applied for manufacturer division membership. Louis Silvio is president of the firm, which was established in 1996. Hydro Quip Inc. designs and manufactures custom environmental water treatment equipment, which is sold primarily through distributors. Sponsored for PEI membership by Jeannette Csiky, Stanwade Metal Products Inc., Hartford, Ohio. www.hydroquipinc.com
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The TulsaLetter 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.