Category Archives: Equipment-POS

merchant card processing equipment including swipe and POS terminals

EMV handbook for merchants by Verifone

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emv guide verifone merchant terminalVerifone’s EMV handbook is a comprehensive guide for both retail and card not present merchants. It’s hardware agnostic and the Question and Answer section is especially useful.

Two questions on page 17 about hardware need to be read together. To clarify the liability shift going into effect October 1, the merchant’s hardware (terminal) needs to be more than capable of processing chip card transactions.  It needs to be certified on the processor platform and EMV must be enabled on the merchant account. This is an important distinction.

There may be thousands of terminals in use technically capable of accepting chip cards, but either the terminal is not yet certified for EMV chip card transactions, or the processor has not certified the terminal to their platform.

Beware purchasing terminals that will ‘get you ready’ to be EMV compliant. Will the seller guarantee the terminal will be certified for the acquirer platform you need? For example, acquirers usually have multiple platforms but not all merchants can switch between them. With the liability shift just weeks away, merchants wanting to be EMV compliant should not wait another minute:

  • Buy only EMV certified terminals acquirer confirms can be enabled.
  • Verify firmware and or software is current before buying
  • Request an EMV TID from acquirer
  • Download file, usually required for countertop terminals
  • Install new software driver, if applicable, for virtual terminals

Christine Speedy – Thanks for reading! If your business needs EMV certified terminals or Card Not Present risk mitigation solutions today, contact me at 954-942-0483 or 3Dmerchant.com/contact. I specialize in business to business and mid-market payment solutions.

Need an EMV terminal? The problem with desktop terminals for mixed retail & card not present

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For mixed retail and card not present merchants, especially with a business to business customer component, a traditional desktop terminal can cause problems including failed PCI compliance, higher merchant fees, and increased losses from customer disputes  – the dreaded chargeback. To comply with EMV, now is the time to address multiple business needs to maximize profits.

Why is a traditional desktop terminal bad for mixed customer base?

Verifone VX520 VX805 EMV terminal

Verifone VX520 with VX805 EMV terminal

  1. Merchants have retail merchant accounts with their swiped terminal. When a transaction is key entered, it’s automatically qualifies for the worst non-qualified rate for the card type, because expected magnetic stripe data is not received.
  2. Key entered or card not present (CNP or MOTO/ mail order telephone order) transactions require additional data to protect against fraud losses. Users can bypass prompts if asked, but more importantly, the transaction is still presented as RETAIL, so retail rules apply for responding to disputes.
  3. Internal paperwork such as credit card authorization forms are PCI compliance nightmares and often don’t meet requirements to win disputes.
  4. For any business with a commercial account aspect, there is NO desktop terminal capable of qualifying merchants for the lowest fees, available only by supplying level III data.

What’s the alternative to a desktop terminal?

verifone MX915 EMV terminal

Verifone MX915 multilane signature capture terminal

Desktop software like PCCharge and ICVerify have all announced end of life because they cannot support new payment technologies like EMV. The swiper wedge that many small businesses have used do not support EMV and that won’t be changing, so they too will disappear. The alternative is a payment gateway with virtual terminal; a cloud based solution. Buyer beware. There are significant differences between gateways; many of them are not much better than a desktop terminal.

Virtual Terminal with EMV Buyer Tips:

  • Choose an agnostic gateway. That way if you want to change processors in the future, it’s not disruptive to operations.
  • Verify the gateway has an EMV certified terminal for your processor today. For example, First Data publishes their list of certified solutions here: First Data Integrated Partner Solutions Certified Listing.
  • Beware language such as, ‘EMV ready’ for both gateway and desktop solutions. EMV certified terminal is not the same as a certified solution that can be EMV enabled today with your processor.
  • Ask if the gateway supports level 3 processing for retail.
  • If the gateway cannot dynamically change transaction representment from retail to MOTO – and virtually none do- key entered transactions have the same risk as a desktop terminal.

What about mobile? Mobile EMV will largely be rolled out next year, as hardware needs to first be certified, and then all the other certification components will follow.

The only payment solution today that is supports level 3 processing for retail is CenPOS, which also has the most EMV terminal certifications of any gateways to date.

CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS’ secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships. CenPOS is available globally. For additional information, contact Christine Speedy, 954-942-0483.

Vantiv US EMV certified terminal solutions

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Which US EMV certified terminals can be used with Vantiv today? Merchants have two choices, countertop terminal or multilane terminal. The latter is available only with CenPOS, a merchant centric end to end payment engine. On October 1, 2015, retail merchants that don’t support chip cards will be liable for counterfeit credit card fraud.

Vantiv announced a partnership with Ingenico in 2013, to distribute Ingenico EMV ready terminals. While Vantiv did not specifically state which terminals would be certified, the official PR from Ingenico includes, “The portfolio of Ingenico EMV certified devices includes iCT220 & iCT250 countertop terminals, and iWL220 wireless terminal.”

ict250 ingenico emv terminal

iCT250 ingenico emv terminal

To enable EMV at the merchant level, the following steps are needed:

  • Acquirer completes requirements to process EMV
  • Hardware (each terminal) certified to accept EMV
  • Hardware certified to acquirer
  • Gateway certifies hardware to acquirer (if applicable; required for all multi-lane terminals and integrated solutions)
  • Merchant account enabled for EMV

In May 2015, Vantiv announced, “Ingenico Group Adds Vantiv’s EMV-certified Application to Smart Terminals for Small- and Medium-sized Businesses“. Because every terminal is to individually certified, it’s unclear which terminals have been certified to date since they’re not specified, but the iCT250 is definitely on the list.

With CenPOS, Vantiv merchants can also use the Verifone MX 915, a multilane, signature capture terminal, and enable EMV immediately. To process transactions, merchants use a virtual terminal with a web browser and high speed internet, or optional integrated solution. Additional multi-lane terminal options will be available in the future, including the Ingenico ISC250.

verifone MX915 EMV terminal

Verifone MX915 multilane signature capture terminal

CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS’ secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting the merchant’s banking relationships. CenPOS is available globally. For additional information, contact Christine Speedy, 954-942-0483.

EMV chip terminal for Microsoft Dynamics RMS

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What are RMS user options for EMV terminals? Here’s four options for merchants to choose from while waiting for RMS integrated EMV terminal; as of August 24, 2015, there are no gateways driving US EMV certified terminals yet.

Which is best EMV terminal for RMS users to accept chip cards today?

emv smart card

EMV chip smart card.

Which option would you choose?

  1. Choose working virtual terminal and US EMV Verifone MX915 certified terminal with signature capture, hoping the gateway gets integrated into RMS later?  Or use it short term, and switch later if another option is integrated first?
  2. Choose a payment gateway that’s working on EMV certification and RMS integration with unknown ready date? hopefully will add 3-D Secure?
  3. Wait and see? The challenge is time. The closer it gets to Ocober 1, the harder it may be to procure terminals (shortages have been common all year), implement & train etc. Additionally, merchants may have stability challenges with gateways that are integrating terminals for the first time.
  4. Buy a countertop terminal with EMV certified pinpad, and use non-integrated? The units certified will vary by payment processor. This is probably the last choice, because it can never be integrated later.

Today, card issuers bear the fraud loss if they give merchants authorization to accept the payment for a counterfeit card at the point of sale. Merchants never know about this fraud because the processor/acquirer automatically manages the response. Starting October 1, this process no longer applies. If merchant doesn’t support EMV, but the card issuer does, the acquirer is liable and can immediately chargeback the merchant’s bank account via ACH. What’s the financial risk? Nobody knows, but an estimated 63% of card present fraud losses were covered by issuers in 2012.

UPDATE 2016: Contact us for Microsoft Dynamics RMS EMV certified solutions today!

PCCharge Replacement With EMV Certified Terminals

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What can merchants replace PCCharge with? How would it impact your business if PCCharge suddenly stopped working? October 1, 2015 is end of life and end of support, so planning replacement is critical. Because it’s also the same date as EMV liability shift, merchants will want to update to EMV and NFC compatible solutions to optimally serve customers.

Verifone PCCharge is Windows based software program which uses an internet connection to process transactions. It’s compatible with all acquirers (credit card processors), and the ‘wedge’ card reader is the most common retail set up. magtek mini card swiperThere are no similar EMV certified card readers certified to any processor currently.  Because EMV transactions require customers to hold onto their card for the transaction, no change is anticipated.

Option one is a cloud based solution called a virtual terminal. Unlike PC software, the gateway is always up to date; merchants login to a secure web page or to integrated POS software. All virtual terminals use an internet or cloud based payment gateway.

Payment Gateways quick facts:

  • Certified to each processor
  • Certified for functionality, including card brand, transaction type, level III processing, contactless (Applepay for example) and even industry (retail, restaurant)
  • EMV requires a special certification: each credit card terminal is certified to each processor
  • Functions vary widely. Some are very much like desktop terminals but with data now web accessible, and others are intelligent platforms with a variety of merchant efficiency, security, and profit optimization benefits.

Payment gateway overview:

Each processor has their own gateway. For example, First Data Global GatewaySM  e4 or Paymentech Orbital® Payment Gateway. There’s also independent or third party gateways. For example, CenPOS or Authorize.net. Third party gateways provide flexibility to change processors at will without disrupting operations, among other benefits. For all non-integrated solutions, the payment gateway manages the consumer facing terminal.

EMV Certified Terminal Confusion:

Semantics is a big problem surrounding EMV today. The hardware is first EMV level 1 and level 2 approved. Then the hardware has to be EMV certified to work with each processor. If there’s a gateway, the gateway has to certify each terminal to each processor. Marketing messages like ‘get you EMV ready’ and ‘EMV capable’ make it very unclear which solutions merchants can actually turn on and process an EMV transaction today vs get you capable to process in the future when certifications are complete. For this reason, merchants must be very specific in asking whether they can accept EMV transactions immediately for any solution purchased.

Payment gateways with certified US EMV terminals:

verifone MX915 EMV terminal

Verifone MX915 multilane signature capture terminal

  • CenPOS: Verifone MX 915, certified First Data, certified TSYS*, Chase Paymentech. Ingenico iSC 250. This article will get outdated fast. Contact us for the latest certifications.

As of 10/29/15 there are virtually no gateways with US EMV certified terminals other than CenPOS.

* TSYS provides flexible connectivity options for all the big acquirers. By certifying to TSYS, merchants can use the certified solution with First Data, Vantiv, NPC, Paymentech, Moneris, Global, Heartland, Elavon and others.

Option two is a countertop or desktop terminal:

Verifone VX520 VX805 EMV terminal

Verifone VX520 with VX805 EMV terminal

Because the EMV transaction requires more memory than in the past, older countertop terminals cannot support EMV, even with an added pinpad. First Data has their own proprietary equipment; Verifone is one of the most popular brands for use with all acquirers, including First Data. The Ingenico iCT220 and iCT250 are also add on peripherals. Countertop terminals, and most gateways, do not support level III processing, critical for business to business merchants to lower merchant fees.

In summary, merchants can replace PCCharge with a universal payment gateway with certified EMV terminal, with a proprietary payment gateway that has certified EMV terminal, or with a countertop terminal, often with a separate EMV peripheral. It’s very important to ask any equipment supplier if they unit is certified for use today vs in the future.

WHICH IS THE BEST EMV SOLUTION TO REPLACE PCCHARGE?

  1. For business to business, there is only one solution that meets all B2B business needs: CenPOS.
  2. For multi-location retail, and big ticket  or high risk sales (electronics, auto parts), CenPOS.
  3. For mom and pop retail, the VX520
  4. For restaurant, quickstop and grocery, I don’t know, I don’t have experience in those industries.

If your business processes more than $1M annually and you need help with EMV, contact us.