Image

12:10 PM / Monday July 4, 2022

23 Jan 2020

Swiping payment cards at the pump could put your card information at risk

  • Facebook
  • Twitter
January 23, 2020 Category: Color Of Money Posted by:

BPT

Have you paid for gas recently at the pump where you’ve had to swipe your credit or debit card?

At gas stations across the U.S., criminals are skimming cards and stealing payment card data from consumers paying at older fuel pumps. This is because the majority of fuel stations still use insecure outdoor fuel pumps with point of sale (POS) systems that read the magnetic stripe on the back of a payment card to process the purchase of gas instead of POS systems that use more secure EMV(R) chip card readers.

Image

In fact, the U.S. Secret Service estimates that roughly 20 to 30 skimmers are discovered a week on fuel pumps, with an average of about 80 payment cards copied on it when the skimmers are removed. Stolen payment account information can be subsequently printed onto duplicate credit or debit cards, and used by criminals to make unauthorized purchases at stores and fuel pumps that do not have chip-enabled POS systems – draining a cardholder’s checking or savings account or maximizing their credit card balance. The industry calls this counterfeit payment fraud or counterfeit card fraud.

Currently, counterfeit payment fraud experienced by fuel merchants at the pump is absorbed by the financial institution that issued the payment card to the consumer.

That’s about to change.

Fraud dollars may be absorbed by independent and franchise owners of fuel stations on Oct. 1, 2020 if their pumps are not upgraded to process chip cards. Depending on how much fraud a station experiences, it could become a significant burden to station owners.

But this can be avoided.

For Visa cards, liability for fraud dollars stays with card-issuing financial institutions and does not shift to station owners if fuel pumps are chip-enabled.

Chip technology is proven to prevent counterfeit fraud. In fact, according to payment company Visa, non-fuel merchants that are chip enabled have experienced a significant 81 percent decrease in counterfeit fraud dollars. However, troubling statistics show only about 7 percent of fuel pumps nationwide are processing chip transactions.

For station owners, there’s no time to waste — contact your hardware or fuel provider for information on how to upgrade your pumps. For consumers, make sure to pay with a chip card at a fuel pump that is chip-enabled. If you’re not sure if the pump is safe, pay inside with your chip card.

  • Facebook
  • Twitter

Leave a Comment

Recent News

Stateside

Just the beginning

July 1, 2022

Tweet Share Pin Email Over 150,000 people from around the country participated in the Mass Poor Peoples...

Commentary

Commentary
The fine print

July 1, 2022

Tweet Share Pin Email While we do need to pay attention to Supreme Court Justice Samuel Alito’s...

Education

Community College of Philadelphia to pay off $1.4 million in outstanding student account balances

June 17, 2022

Tweet Share Pin Email Community College of Philadelphia announced that it will pay off more than $1.4...

Color Of Money

Americans still have financial goals, just not sure how they will reach them

June 24, 2022

Tweet Share Pin Email BPT If you have a vision for where you’d like to be financially...

Politics

Takeaways: Trump’s mind ‘made up’ on fraud ahead of Jan. 6

June 17, 2022

Tweet Share Pin Email ABOVE PHOTO: A video exhibit plays as the House select committee investigating the...

Go With The-Flo

Sherri Shepherd’s talk show, “Sherri,” to air in place of former “The Wendy Williams Show”

June 17, 2022

Tweet Share Pin Email ABOVE PHOTO: Sherri Shepherd (Photo: s_bukley / Shutterstock) By Flo Anthony After 13...

The Philadelphia Sunday Sun Staff