Payments

Grocers are committed to the security of their customers, including their payment security. FMI has the following resources and information on payments including details and updates on the liability shift for merchants to be EMV-enabled and for issuers to have chip cards available in the market. 

For information about FMI's work on Swipe Fees and related resources visit our Swipe Fee webpage.


Payment Resources

EMV Shift for Fuel Pumps

In December 2016, Visa and MasterCard announced a three-year extension to the EMV liability shift for merchants with automated fuel pumps. The change extends the liability to October 1, 2020 from the previously announced date of October 2017.

EMV Transition and Routing Provisions

In November 2016, the Federal Reserve published an updated FAQ that clarified that merchants have explicit routing rights under the 2010 debit reform law and that networks cannot inhibit them. FMI has long argued that customer-facing “debit routing screens” violated these routing provisions, and we were pleased that the Federal Reserve provided clarity on the matter. The Federal Trade Commission investigated Visa’s operating rules and the routing screen. Visa has since indicated that they will take corrective actions. FMI and several other trade associations also sent a letter to Visa as a follow up to the Federal Reserve’s updated FAQ.

Best Practices for Processing Chargebacks

The merchant community has been in the process of migrating to chip card-compliant point-of-sale terminals since the card networks announced the October 2015 liability shift. While a good portion of food retailers have the EMV-enabled hardware in their stores, many have faced delays in getting their terminal software certified due to bandwidth issues of third party vendors tasked with certifying these terminals. As grocers await certification, they have seen unprecedented increases in chargebacks during the months since the liability shift. We expect to see the number of EMV-compliant stores continue to increase in the coming months and years as the certification queue decreases, which will hopefully help mitigate the rise in chargebacks seen at the retail level.

FMI has compiled best practices for addressing these chargebacks in addition to providing materials from the card networks.

Payment Blog Posts

  • FED up with Credit and Debit Card Swipe Fees

    20161208-FMI-0036_ed_WEBAmericans pay the highest card swipe fees in the world every time they use a credit or debit card. The credit and debit card companies collect nearly $79 billion each year in these fees. What’s more, consumers may not even realize they are paying these hidden fees ranging from 23 cents to $4 every time they use their cards. In a society that often chooses plastic over coins and cash, this is simply outrageous, and shoppers should not be forced to pay a penalty for using their debit cards – a card that should be less expensive and faster.
    Full story
  • Visa and MasterCard Delay EMV Liability: A Win for Retail

    20151208-FMI-189r-WEBNo matter how big or small, when merchants get a victory, we run with it. That is what last week’s announcement from Visa and MasterCard is—a win for retail. The two biggest card brands announced they are delaying EMV implementation from the original announced date of 2017 until 2020, largely due to migration challenges and lack of availability of equipment. The three-year delay is a relief for stores who are already working with and toward complete EMV implementation.
    Full story
  • EMV: The Cost of Confusion

    FMI in the news

    The one-year anniversary of the EMV shift is just around the corner. FMI has heard countless stories about the delay in certification and the increase in cost of business operations, even for retailers who have the chip-card readers installed in stores.

    Full story
  • Food Retailers Need to Press for Continued Debit Card Competition

    Jennifer Hatcher on Debit Card ReformIt is time to make it clear to your Member of Congress that you strongly oppose repealing these important debit reforms and that you are watching how they vote on this issue. We hope you will support these efforts by sending a letter in opposition to the legislation we feel is more appropriately called the “No-Choice Act”.
    Full story
  • FMI on Innovation in Payments Systems

    FMI in the newsOne of Congress’ many responsibilities is to ensure competition in the marketplace. FMI and member companies appreciate the legislative work that has been done to increase innovation in the payments system, specifically debit transactions. The passing of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act was a step in the right direction of addressing a broken system. Retailers hope Congress will leave the successful Durbin amendment in place so that the American economy will continue to thrive. The following opinion piece appeared in The Hill on September 1, 2016
    Full story