BONUS CONTENT: EMV at the ATM

NATIONAL REPORT — For convenience store operators who own ATMs, the next EMV (Europay, Mastercard and Visa) liability shift deadline is coming Oct. 1, 2016. That is when ATMs must be EMV enabled or c-store retailers could be on the hook financially for fraudulent activity, in the same manner as they are at the point-of-sale now.

On the consumer end, many things will remain status quo with EMV ATM transactions compared to current magnetic stripe ATM transactions. However, there are a couple of major differences — and these differences are likely to cause some consumer confusion.

Online PIN verification, as well as online transaction authorization, will be the same, but EMV ATM transactions will require online request messages that contain more data. Therefore, the EMV chip card will need to remain in the ATM machine for the duration of the transaction.

Consumers might not be used to having their ATM card in the machine for the entirety of the transaction and try to remove the card early, perhaps believing an ATM malfunction has occurred. In a best-case scenario, the consumer will simply be asked to insert their ATM card again.

Deborah Spindle, director of EMV solutions for Paragon Applications Systems, stressed that ATM “dip readers” could be most at risk after EMV upgrades have been made.

“A determined customer could try to remove the card early, which could damage the system,” Spindle said. “Screen messages and signage are both very helpful things to have at the ATM.”

Paul Saxon, president of Electronic Transaction Corp., a provider of ATM equipment, processing and services, has already seen many examples where consumers are unaware of how long the card needs to stay in the ATM. He believes signage at the ATM to help the customers will be crucial.

Clerks also need to know about the differences EMV-capable ATMs have.

“People unaware of the time the card needs to stay in the machine have actually walked away without retrieving the money they requested,” Saxon noted.

To best ensure customers do not damage their cards, nor the ATM machine itself, Spindle recommends that signage and/or screen messages show the cardholder:

  • How to insert the card;
  • Prompt the cardholder to insert the card at the appropriate time;
  • Display a “transaction processing” message to indicate the transaction is underway; and
  • Prompt a cardholder to remove the card at the appropriate time.​

Editor's note: Check out the October issue of Convenience Store News for our full report, "EMV: What Now?" A digital edition of the issue can be accessed by clicking here.

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