Visa Pushes Back PIN Pad Fine Threat To 2012

Written by Evan Schuman - October 15th, 2009 - StorefrontBacktalk.com

After some serious retail pushback—particularly in the gas station sector—Visa has relented and agreed to back off an earlier PIN pad compliance deadline originally set for July 1, 2010, some 7-and-a-half months away. The new policy isn’t threatening fines until Aug. 1, 2012.

One organization that had been pushing the change, the National Association of Convenience Stores (NACS), applauded the change.

“This is huge for our retailers, as many have expressed their inability to financially swallow PCI compliance, which costs an average location $20,000, and upgrading dispensers to TDES at an average cost of $3,000 per dispenser,” said Michael Davis, NACS vice president of member services. “Our average site operator made $40,000 pre-tax last year. For them to invest in all mandates this year means operating at break-even. This allows retailers to take the more cost-effective approach of installing TDES-capable PIN pads during pump upgrade cycles, rather than a blitz.”

But the changes were mostly fueled by strong retail lobbying efforts. Beyond the convenience retailers that NACS represents, several of the nation’s largest chains—including at least one major department store—were threatening to abruptly cut off PIN debit at the deadline, possibly switching to signature debit to temporarily sidestep the issue. (more)