Nowadays, more and more merchants are becoming concerned with the problem of EMV standard implementation. These merchants are looking for the most suitable EMV solutions. The purpose of this particular article is to provide some guidelines, which will allow merchants to solve EMV compliance related problems.
The concept of EMV compliance is relevant for merchants, whose facilities are equipped with devices, needed for accepting of EMV payment cards. Depending on the size of a merchant (its transaction volume), its operations model, and industry type, several approaches can be used by the merchant to become EMV compliant.
Your EMV compliance implementation strategy will depend on particular payment terminal solutions, used by your business. Conceptually, there are three scenarios a merchant can follow to become EMV compliant.
EMV compliance for different merchant types
In this section we are going to consider several merchant types, starting from simpler ones, and moving on to more complicated models. Specific steps to be taken by the merchant on the way to EMV compliance will depend on the type of payment terminal solution this merchant uses.
Standalone terminal solution case
Let us consider a merchant business (say, a retail shop), which uses either no terminals, or a standalone terminal solution, provided by the MSP. The terminal is used as a standalone device, which accepts payments, and is not integrated with the POS system. After a payment is accepted by the terminal, it should be registered in the main POS system that is used as a primary system of record.
Consequently, the current solution can, potentially, be replaced by any similar standalone terminal of the same class, which supports EMV standard. So, in order to become EMV compliant, such a merchant should address its current MSP, and verify what EMV options are available (the simplest strategy for the merchant). If the current provider cannot offer any EMV options, the merchant can address other MSPs, which offer similar pricing conditions.
Integrated terminal solution case
Let us now consider the case, when the merchant (say, a large network) already uses some payment terminal solution, provided by the MSP, and the merchant’s POS system is already integrated with the existing payment terminal solution.
In this case it would be desirable for the merchant to resolve the issue of EMV compliance with its current MSP. However, if it is not possible, then the merchant has to search for an alternative solution, taking into account all the intricacies of potential new integration.
As the process of implementation of a new terminal solution involves integration of POS system with payment terminal(s), the merchant should devise the integration strategy in advance. As we wrote previously, the strategy involves several critical issues, such as:
- Hardware to be used
- Functions it should perform
- Terminal fulfillment mechanism
- Payment types to be handled
- Required terminal solution types
A detailed description of EMV terminal solution implementation strategy is provided in the respective use case.
Proprietary terminal solution case
The third case concerns a merchant, which developed its own payment terminal software using its own development team. In contrast to the merchants, described in the first and second subsections, this merchant cannot use any other solutions from any MSPs, because it has its own application, supported by its own designated personnel. This application has to be certified by the merchant with the current processor.
In order to keep using its current terminal application, the business (merchant) needs to go through EMV certification process. As part of the EMV certification, the merchant will, most probably, have to perform the following steps:
- address its current processor
- buy the respective product
- perform integration at server level
- add the respective logic to the payment terminals
- purchase EMV certification toolkit
- go through EMV certification process, as described in the respective article
In order to achieve EMV compliance, you need to decide, which type of merchant your business belongs to. This will allow you to define the scale and the main phases of the process of becoming EMV compliant. If you follow all the necessary steps carefully, EMV compliance will open an opportunity for gaining new benefits.