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NEW YORK -- Visa agreed to back off its earlier PIN pad compliance deadline originally set for July 1, 2010, to the new date of Aug. 1, 2012, following retailer pushback, particularly from the gas station and convenience store industry, Storefrontbacktalk.com reported.
Technically, the deadline for next summer is still in place, but the threatened punishment has been pushed back a few years.
"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, in the report. "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."
The changes were mostly fueled by strong retail lobbying efforts, even beyond the convenience retailers -- including at least one major department store. Retailers were threatening to abruptly cut off PIN debit at the deadline, possibly switching to signature debit to temporarily sidestep the issue, according to the report.
The tactic is not dissimilar from what Best Buy did this summer when it threatened Visa over contactless payment debit charges when it released a media statement saying it "is constantly looking at ways to reduce the cost of check lane tender. As part of this exercise, we are evaluating the continued acceptance of Visa-issued contactless payment cards in our stores in light of recent price increases. However, at this time we have not completed our analysis," the report stated.
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