May 4, 2020
NJGCA May 4th
Coronavirus Shutdown Update
Visa Extended EMV until April 2021
Previously we notified you that Visa and MasterCard were unwilling to extend the October deadline to have your pumps EMV compliant in order to accept chip credit cards. However, half of a victory was realized on Friday when Visa agreed to extend the deadline until April 17 of 2021. However, it is almost a moot point unless MasterCard makes the same concession. You should still be prepared and make sure all of your dispensers are compliant by October. We will keep you informed and let you know if MasterCard also agrees to a similar extension. Indications are that most if not all of you have already upgraded your dispensers to be EMV compliant, but any stragglers need to be aware.
COVID-19 Financial, Security for Consumers Act
We need to put you on alert that the COVID-19 Financial, Security for Consumers Act will be introduced in the Senate and Assembly Thursday. This legislation will prevent creditors from attempting to collect ANY debt during the “covered period,” which lasts until December 1, 2020. The customer would only need to alert creditors that they suffered financial hardship during the pandemic, prohibiting creditors from even making a phone call to collect debts. We have our eyes on this legislation. Here are our concerns:
If you have customers that you give credit to, particularly for gasoline and diesel commercial accounts, it would be seven months before they would need to pay. All they have to do is inform you that they are having economic difficulties and you will be prohibited from even making a phone call to ask about payment.
This can also be a huge problem when your customer comes in with a vehicle in serious need of repairs that you extend credit to. You will be prohibited from even asking that customer for payment if they notify you that they are in economic distress. Details we still need to learn about: If a customer comes in asking for repairs and then announces that they can't pay you after the fact, now it will be seven months before you can even call to request payment. We will be weighing in with both committees on Thursday. This is a brand new procedure for us as testimony must now be given over the phone and by appointment and registering with committee staff prior to public hearings.