Gas Stations Win Reprieve From Visa on Upgrading Fuel Pumps

(Bloomberg) -- Visa Inc. said gas-station operators across the U.S. have an additional six months to upgrade fuel pumps to accept customers' chip cards.

Pump operators now have until April 2021 to modernize systems as the payments network seeks to help merchants hurt by the coronavirus pandemic. The previous deadline was Oct. 1. Visa also delayed changes to the swipe fees paid by merchants each time a consumer uses a credit or debit card.

“We believe these actions are not only the right thing to do, but will also ensure the long-term stability of the payments ecosystem,” Visa said Tuesday in a statement. “The Covid-19 pandemic has impacted the world in ways nobody could have predicted.”

The gas-station industry had warned it wasn't ready for the previous deadline and repeatedly had asked Visa and its rivals for more time. Visa's move on Tuesday came as consumers are spending less on fuel as much of the country remains sheltered in place to stem the spread of the coronavirus.

Read more about the gas station industry's efforts to upgrade fuel pumps

“The EMV delay comes at a time when convenience stores' main objective is keeping stores open to meet the essential needs of their customers and communities,” Anna Ready Blom, director of government relations for the National Association of Convenience Stores, said in a statement.

Visa had already delayed its changes to swipe fees until July. The firm will now give merchants and their payment processors until April to adjust, while moving ahead with plans to lower the fees that grocery store owners pay in July.

©2020 Bloomberg L.P.