What is EMV?
EMV (Europay®, Mastercard®, Visa®) is a payment standard that utilizes a difficult-to-duplicate microchip on the credit card, rather than the traditional magnetic stripe. In its primary format, the card is inserted (or "dipped") into an EMV compatible reader/PIN Pad for the duration of the transaction while the customer inputs a security PIN to establish valid card ownership.
The purpose of EMV is to reduce on-site credit card fraud by confirming that the card is both valid and in the hands of the correct owner. EMV does not however protect data after the transaction, so it does nothing to prevent site-wide data breaches. For this reason, merchants should utilize processors that support end-to-end encryption and tokenization to protect themselves from data breaches.
For more information about EMV and merchant liability, check out:
What will an EMV installation on embedded POS look like?
Because a PIN Pad is always required for a US EMV transaction, a “client control” from Datacap is required at each lane to drive the PIN Pad on behalf of the Point of Sale. For PC-based POS, a software-based control is utilized, but for embedded POS without the availability of a PC, a piece of proprietary Datacap hardware hosts a control at each lane/ECR to drive the PIN Pad. This allows for flexibility going forward as Datacap adds support for more PIN Pad options that will be interchangeable with Datacap hardware.
Over 83% of Datacap’s embedded product installations are used in “multi-lane” installations.
With this stat in mind, we’ve prioritized the multi-lane applications for release prior to the single-lane applications. A multi-lane installation utilizes a TwinTran™ Server as a “payments hub” that accepts transaction requests over the local network from a variety of Datacap controls – including PDCs™ (peripheral device controllers) that drive PIN Pads at each lane, or mobile clients running on tablets for mobile POS extensions. The “payments hub” approach of TwinTran Server allows for consolidated transactions, batching and reporting for the merchant.
Once US EMV TwinTran Server apps are released, Datacap will then migrate EMV-enabled applications to the IPTran™ LT, a single-lane EMV product that includes the client control and integrated payment application in a single piece of hardware. EMV-enabled PIN Pads connect directly to the “PIN Pad / MSR” port on the IPTran LT. The initial PIN Pad release will be the VX805 (pictured) from Verifone, but additional pad options will continuously be certified and added to the Datacap product line going forward.
How can you prepare?
Datacap’s EMV/PIN Pad development is complete and we’re in parallel certifications with virtually all processors (and card brands) for EMV, but we’re unfortunately at the mercy of the certification teams at each processor who determine the time-table for release. Because we don’t have direct control over those certifications, we unfortunately can’t provide an accurate date range for our EMV releases, but are still expecting to have applications available for most processors by the end of 2015. That being said, dealers can install EMV-ready equipment today which will simply require an application update in the Datacap device once EMV-enabled apps become available.
So, dealers should be installing IPTran LTs for smaller installations and/or TwinTran Servers with PDCs for larger installations today. The Verifone VX805 is also currently available from distributors loaded with the EMV-enabled version of XPI (no pad upgrade should be required if the EMV version of XPI is utilized).
Here’s what you’ll need when placing the order for your VX805...
- Verifone VX805 (M280-703-A3-WWA-3)
- XPI Application (Load Version 8.42B)
- Processor Encryption (processor-specific)
- Power Cable (PWR282-001-01-A) AND Serial Cable (CBL282-031-02-A)
Dealers should also be taking advantage of Datacap’s product usage programs to obtain no-charge hardware/application upgrades and build on-going recurring revenue streams with a variety of payment processors. If you’re not already involved in these programs and are interested in getting started, just ask.
Beyond the installation of EMV-ready hardware, the most important preparation that dealers can perform for EMV is education. There is a lot of misinformation flooding the marketplace – predicated primarily by merchant services sales reps that are using EMV as a scare-tactic in an effort to flip merchants to stand-beside payment terminals and build their merchant portfolio. Dealers should be taking on a consultative role pertaining to the US EMV migration so that relationships, systems sales and opportunities for recurring revenue aren’t lost to competitive entities that don’t have your merchants’ best interests at heart.
What about equipment I already have in the field?
IPTran LT and TwinTran Server/PDC installations will only require a remote upgrade once EMV-enabled apps are released by Datacap. We’ll be making announcements via direct email, our website and social media as we release those updates. If you’re not currently on our email list or following us on social media, you can do so via the links at the top of this page. This is a great way to stay updated on new product releases and news.
For legacy Datacap equipment that was installed within the last seven years, a pro-rated credit toward the purchase of new hardware will be available shortly via your PSCS™ account. In the mean-time, please feel free to contact Datacap directly regarding price quotes for Tran upgrades.
Of course, feel free to reach out at any time with questions or concerns.
We love talking payments.