In a letter sent to Southeast Petro Distributors concerning indoor fraud liability on June 21st, 2016, ExxonMobil writes:
We write to advise you that you have retail sites which exceed $2000 in indoor counterfeit fraud and will become liable for their indoor counterfeit chargebacks effective July 1, 2016. As you are aware, ExxonMobil has been absorbing indoor counterfeit fraud for all retail sites since October 1, 2015. Any single site which exceeds $2000 cumulative indoor counterfeit fraud since October 1, 2015 will be responsible for counterfeit fraud chargebacks received on or after July 1, 2016. This indoor fraud liability shift will be on a go forward basis only and is not retroactive for chargebacks received before July 1st 2016.
If you are concerned that your location may be a risk for exceeding this $2000 limit, please contact our offices to get a detailed report on the amount of chargebacks that you have accumulated. The sites that have exceeded $2000 should expect to see counterfeit fraud chargebacks through the normal chargeback process after July 1st.
As a reminder chargebacks lag 30-90 days. The chargebacks that will be charged to you are those received on or after July 1st. Attached are some additional Q&As and recommendations for minimizing fraud liability along with EMV recommended next steps. If you have any further questions about the indoor fraud liability shift, please contact your District Manager.
Question,
How can I avoid indoor counterfeit chargebacks?
Answer
When available from your POS vendor, retailers need to install certified EMV technology that supports chip card-processing. Processing the transaction on chip card technology is the only way to avoid the liability.
Additionally, below are recommended best practices to minimizing indoor fraud liability exposure ahead of software upgrade.
Question
When are the technology platforms available for me to install?
Answer
Gilbarco systems are available now, sites should schedule their install. Work with your local service organizations to fully understand the sites’ path to EMV and required pinpads.
VeriFone locations will receive a download when the EMV software is available. As the pinpads for VeriFone locations were replaced during EM1, there is no technician required for VeriFone’s upgrade to EMV. Sites need to take action once the download is sent to the system to process the upgrade, ExxonMobil will communicate the timeline for when the downloads will begin once VeriFone releases the software.
Wayne locations should contact their local service provider to understand the path to EMV. These locations require Namos compatible hardware as the Nucleus was announced to be end of life.
Question
What should I be doing right now?
Answer
Understand your sites path to EMV, technical options and requirements. Understand the fraud numbers to make informed decisions on your EMV implementation schedule. While priority is on inside upgrades, the longer lead time of forecourt installs for October 2017 is important to be planning and acting now.
