Mastercard announced a new consumer protection program to address the fraud vulnerabilities that exist today at fuel merchants who have not completed the upgrade to safer and more secure EMV terminals. This new program has been put in place as the company shifts the EMV Automatic Fuel Dispenser (AFD) liability date to April 16, 2021 to support fuel merchants still completing upgrades.
Fraud has been migrating to AFDs at an accelerated pace, with 17 percent of all US card present fraud losses reported to Mastercard occurring through transactions at these merchants as of Q4 2019. This creates pain for the entire ecosystem, especially for consumers. 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, US 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.”
Protecting Cardholders at the Pump
Mastercard issuing banks will be provided with enhanced data on high-risk fraud transactions at fuel merchants 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 aid them in their decision-making criteria, providing additional protection for their cardholders at fuel pumps.
Mastercard will arm fuel merchants who experience high fraud with the company’s Merchant Fraud Insights to provide additional details into the fraudulent 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.
Mastercard is focused on maintaining the integrity of the payments system, while also supporting issuers and merchants to keep consumers protected. The upgrade to EMV remains paramount and has helped curtail counterfeit fraud in all countries and channels that have implemented the technology. In the US, between Q4 2015 and Q4 2019, counterfeit fraud basis points at merchants who have upgraded to EMV have decreased by 88 percent proving the ability to fight fraud and protect businesses and consumers.