Datacap s Guide to EMV in the US

Transcription

1 Datacap s Guide to EMV in the US A Datacap Whitepaper

2 2 What is EMV? 3 Datacap s experience with EMV benefit of a one-tomany interface 4 What will EMV with Datacap look like? 6 PIN Pad hardware options 7 Updates for existing hardware/software? When will it be available? 8 How should you prepare?

3 What is EMV? On October 1st, 2015, liability associated with the fraudulent use of counterfeit or stolen cards essentially shifts from the card issuer to the merchant. Merchants can alleviate this risk by implementing payment solutions that comply with EMV (Europay, Mastercard and Visa ) that are currently employed across Europe and Canada. EMV-enabled (chip) cards contain a microprocessor in addition to the standard magnetic stripe. This microprocessor makes the duplication of a stolen card nearly impossible, leading to the eventual reduction of card-present (in-store) fraudulent transactions. While EMV does mitigate fraudsters ability to clone cards from stolen card numbers, it does nothing for card not present transactions (ecommerce), where the bulk of stolen cards are used, or for lost/stolen cards unless a PIN is required. US EMV will also not have an effect on merchant liability concerning site-wide data breaches only the on-site use of fraudulent cards and disputed transactions (charge backs). EMV alone cannot prevent the unauthorized collection of card data. Merchants considering an upgrade to EMV should also consider enhancing their on-site card security solutions via encryption and tokenization where available. It is important to note that EMV is a liability shift and not a mandate. Many merchants will likely wait until their Point of Sale system requires an update to migrate to EMV, while others may not upgrade at all, depending on their exposure to fraudulent transactions and willingness to adopt new hardware and EMV processes (slower transactions). 2

4 Datacap s experience with EMV benefit of a one-tomany interface As one of the few integrated payments providers to successfully implement Canadian EMV, Datacap is ideally positioned to help ISVs and dealers facilitate the migration for their customers in the US. Again, it s important to reiterate that EMV is not a mandate. In fact, five years after the liability shift in Canada, it is estimated that only 51% of Canadian merchants have adopted EMV. EMV adds significant complexity to processor certifications, requiring individual development and certifications for each PIN Pad to each card brand (Visa, Mastercard, Amex and Discover) for every payment processing platform. POS providers that have existing direct interfaces to US payment processors will likely turn to a third-party solution to mitigate costs associated with EMV development and certification. The benefit of a one-to-many integration to an integrated payments middleware provider like Datacap is that we handle the initial and on-going development associated with payment processing on behalf of the POS provider, allowing them to save hundreds of thousands of dollars in development and certification costs. Through one simple integration, POS providers gain instant access to virtually all North American Payment Processors and an evolving list of EMV-enabled hardware. As one of the few integrated payments providers to successfully implement Canadian EMV, Datacap is ideally positioned to help ISVs and dealers facilitate the migration for their customers in the US. 3

5 What will integrated EMV with Datacap look like? In order to read the chip on an EMV-enabled card, the card must be inserted into a dedicated EMV card slot, available primarily on PIN Pads and mobile EMV readers. Datacap will drive EMV-enabled hardware directly via our controls, completely removing all cardholder data from the POS app (Out-of-Scope integration). POS integration partners currently utilizing one of Datacap s popular out-of-scope interfaces will have a simple path (with only slight integration changes) to support US EMV. Because EMV implementation in the US will initially consist of Chip and Signature (as opposed to Chip and PIN), EMVenabled configurations at table-service restaurants will be very similar to pre-emv set-ups. Servers will simply insert the cards into an EMV reader instead of swiping them. However, because the EMV-enabled card must be inserted into the EMV reader for the duration of the transaction, it is likely that the consumer will have to add the tip before the transaction is initially processed. This may have a significant impact on the merchant s decision to initially implement EMV. FOR PC-BASED POS o PC-Based POS providers utilize dsiemvus (Datacap s out-of-scope US EMV interface) to add support for US EMV to their POS application. The dsiemvus control drives EMVenabled hardware directly, creating a simple, plug and play approach to EMV. o NETePay also accepts transactions from mobile devices to enable easy POS extensions (Support for mobile EMV coming soon devices TBD). 4

6 FOR MOBILE POS FOR ECRs o Current POS partners have modest integration work to support EMV. POS partners utilizing dsipdcx for out-of-scope NETePay integration or DSIEMVClientX for Canadian EMV have the simplest path to EMV in the US, with only a few slight integration changes required to support US EMV transactions o Tablet and Cloud-based POS providers utilize Datacap s IPTran LT Mobile or PaymentsDrawer for integrated payments and peripheral management. Datacap s mobilecentric products drive POS peripherals (receipt printers, pole displays, PIN pads, MSRs, barcode scanners, weigh scales, etc.) on behalf of the POS while adding integrated payments support for virtually all North American processors. o EMV-enabled PIN Pads connect directly to a dedicated PIN Pad port on the IPTran LT Mobile or PaymentsDrawer for an easy plug and play implementation (Support for mobile EMV coming soon devices TBD). o ECRs and embedded POS utilize Datacap s Tran family of hardware to drive a variety of EMV-enabled PIN Pads. o For single-lane installations, the new, small footprint IPTran LT drives the EMV-enabled PIN Pad directly on behalf of the POS. 5

7 o For larger installations, Datacap s new, small footprint PDCs (Peripheral Device Controllers) drive the PIN Pad at each lane and forward transactions to a Tran Server or NETePay software which act as a payments hub. The Tran Server and NETePay also accept transactions from mobile devices, creating an additional opportunity to offer existing and prospective customers a mobile POS extension without changes at the POS (Support for mobile EMV coming soon devices TBD). PIN pad hardware options As with Datacap s existing out-of-scope payment solutions, hardware compatibility is constantly evolving. dsipdcx (Datacap s existing out-of-scope control for PC-based POS) now supports dozens of plug and play PIN Pads, contactless readers, all-in-one touch terminals, and MSRs. Datacap handles all hardware integration and certifications on behalf of the POS, allowing for a fast and flexible integration. For US EMV, Datacap plans to initially certify and release the VeriFone VX805, a cost effective entry-level PIN pad from VeriFone supporting EMV, standard magnetic stripe and contactless payments (Apple Pay, Google Wallet, Softcard, etc.). Shortly after, we plan to release support for higherend customer-facing PIN pads from Ingenico and mobile EMV readers, consistently adding new device support from a variety of providers going forward. This enables a flexible EMV solution that won t lock merchants into a single pad or manufacturer option. This enables a flexible EMV solution that won t lock merchants into a single pad or manufacturer option 6

8 When will it be available? Once hardware and platform development is completed, individual processor and card brand certifications are necessary to move forward with support for US EMV. We expect to complete our first round of certifications and have select processor availability in late Q Support for US EMV on most processors is targeted for completion and availability for installation prior to the October 2015 liability shift. Check our website, join our mailing list and/or follow us on social media for EMV releases and other payments-related updates. Request an Integration Guide to get started today! Upgrades for existing hardware/software? DATACAP SOFTWARE o US EMV will be supported by go-forward DATACAP HARDWARE versions of NETePay. Standard upgrade fees will apply for purchased software. Software obtained via one of Datacap s usage/rental programs will include no-cost EMV updates. o US EMV will be supported on the IPTran LT, IPTran LT Mobile / PaymentsDrawer and the Tran Server. o Merchants utilizing legacy Tran products who intend to support US EMV will need to upgrade to current hardware/applications. Upgrade pricing can be obtained by logging into PSCS and choosing the Upgrade or Switch Processors button on the main menu. 7

9 LT Mobile customers who have purchased hardware in 2015, a hardware swap is available for merchants interested in moving to EMV only the application upgrade fee will apply. How should you prepare? Educate your merchants Creative marketing by hardware OEMs pertaining to US EMV migration is leading to rampant confusion among merchants. Talking to your customers about the real benefits and short-comings of EMV will prove to be invaluable in regard to their comfort-level when it comes time to make an upgrade decision. Because EMV is simply a liability shift and not a mandate, merchants should first determine if the cost to upgrade to EMV is justified. Merchants who regularly experience charge backs or fraudulent card use will likely upgrade to EMV before the deadline, while those that don t have in-store fraud or disputed transaction issues may be better served to wait until their next POS upgrade to move to EMV if at all. Confirm your POS Providers EMV Plans While EMV migration using Datacap products consists of a simple one-day change to most existing POS integrations, it s important to contact your POS provider and confirm that they re moving forward with EMV support via the Datacap update especially before talking with merchants about the functionality. o For IPTran LT, TwinTran Server or IPTran Install EMV-ready equipment Datacap will support EMV on the following products. These will be upgradeable to EMV, once certifications are complete and software/app updates are released. o o o IPTran LT payments for single-lane embedded POS TwinTran Server multi-lane payments hub IPTran LT Mobile Payments Drawer, payments and peripheral drivers for mobile POS o NETePay - payments for PC-Based POS 8

10 Contact Datacap for preliminary specs and be sure to join our mailing list and follow us on social media to receive EMV-related updates! 100 New Britain Blvd Chalfont, PA Main (215) Fax (215)