FlyerTalk Forums - View Single Post - USA EMV cards: Availability, Q&A (Chip & PIN -or- Chip & Signature) [2012-2015]
Old Jun 28, 2014, 3:37 pm
  #5239  
reft
 
Join Date: Feb 2010
Location: US
Programs: (PM)AA SPG (Marriott), Hilton
Posts: 1,040
Fuel Dispensaries, zip codes & EMV

Originally Posted by JEFFJAGUAR
Many but by no means all merchants in the USA, especially at unattended kiosks, use zip codes as sort of a defacto pin.
To to clear up gas stations and [US] zip codes, it's very much YMMV by state.

The use of a zip code in a credit card transaction is limited by law in some states. One of the limits is the use of the zip code for marketing use, not authentication, but merchants may have completely discontinued the practice of asking for zip cores for fear of the accusation or a misunderstanding of the law.

Fuel Dispensaries have a later liability shift, 2 years later (Oct 2017) Electrical wires in a fuel dispensary require extra permitting. The extra time for EMV adoption is to allow for this, in changing the card readers in the pump over. Many current card readers in the pump are likely using phone based technology and probably running it over a pair of wires not up to snuff for current technology.

Expectation: as EMV rolls in those areas for the October 2015, there will be a shift of some fraud to Gas stations. Speculation: there may be some back and forth over whether the inside store, when present needs to be compliant with the 2015 or the 2017 deadline. The upstream processors will try to assume 2015 for in-store, and the larger fuel merchants may litigate back for 2017.

Further speculation: PIN (for US, online) could make it's first appearance at pumps, maybe 2016-2019, if the fraud shift to Gas Stations is noticeable. It may even become the thin-edge-of-the-wedge for C&P:Offline. If 2016, magstripe could get PINs for unattended transactions well. Alternative: Everyone is paying for gas inside again, no unattended transactions.
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