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Terminal Compliance

If your credit card processing terminal is out of regulatory compliance, you’re putting your customer information and possibly your entire business in jeopardy. Businesses that use noncompliant credit card processing equipment are at high risk for a data security breach. A data breach while out of compliance could result in

  • fines and penalties up to $500,000
  • monthly noncompliance fees
  • damage to your reputation

Even if you do not suffer a data breach, noncompliant credit card processing terminals can cause major headaches including

  • slower payment transactions
  • longer downtimes
  • loss of service
  • inability to find replacement parts

Are you at risk for a data security breach?

The slippery slope of noncompliance is a steep one that can lead to disaster before you know it. The scale below shows how quickly bad can lead to worse once you let your credit card processing equipment fall out of compliance.

Core terminals are fully updated, and receive Class A support from the manufacturer and your merchant services provider, including troubleshooting and technical support.

Non-Class A terminals are no longer in production and do not have manufacturer support. Replacement parts and inventory are increasingly difficult to find, and performance steadily degrades.

Noncompliant terminals no longer meet the standards for regulatory compliance. Merchants using noncompliant equipment are at risk for data security breaches and subsequent penalties up to $100,000.

Unsupported terminals are noncompliant and are not supported by the manufacturer or your merchant services provider. These terminals may be supported by a third-party service provider, but still put you at risk for breaches and penalties.

Obsolete terminals are outdated, noncompliant and wholly unsupported, making them ineligible for updates, modifications, troubleshooting or repairs. These terminals pose the highest risk for security breaches and subsequent fines. Continued use of these terminals may lead to the inability to accept credit cards and the potential failure of your business.

What devices need to be in compliance?

Any equipment that you use to process credit card payments must meet industry and government compliance requirements, particularly the Payment Card Industry Data Security Standards (PCI DSS). Following are the basics of compliance for credit card processing equipment.

PCI Compliance

The PCI DSS clearly states that sensitive information (including credit card numbers and expiration dates) cannot be stored on any credit card processing equipment. Specific compliance requirements are outlined in the PCI DSS. Credit card processing equipment that does not adhere to these security standards is classified as noncompliant and puts your business at risk for fines and data security breaches.

Truncation Compliance

The data security standards outline specific requirements for the printing of credit card receipts.  Only the last four digits of a credit card number may be shown and the expiration date must be obscured on all copies of a receipt. Use of noncompliant equipment that does not adhere to these standards can lead to fines and limited processing capability.

PED Compliance

Debit cards (often referred to as bank cards) and electronic benefits transfers (EBTs) require customers to enter a personal identification number (PIN) into a PIN pad or other PIN entry device (PED). PED compliance calls for rigorous security measures, such as triple DES encryption, fixed key security and authentication software. Using a noncompliant PED could result in fines and the inability to process PIN-based cards.

Triple DES Encryption

Visa and MasterCard stipulate that all PEDs encode PIN data using a multilayer data encryption standard (DES) algorithm. Failure to use triple DES encryption knocks your PED out of compliance and puts you at risk for the consequences listed above.

One way to minimize the risk of non-compliance is to upgrade to terminals that are EMV compatible. EMV is the global standard for payment processing technology, and it’s coming to the United States. EMV uses an integrated chip embedded in the card to hold all the cardholder information previously stored on the magnetic stripe, and more. And it contains advanced security technology that can help reduce data fraud. Our EMV-compatible terminals are all fully PCI compliant. Please click here for more information about EMV.

Out of compliance? We can help!

Through Compliance 101, you have access to leading edge credit card processing terminals from top names like Verifone and Ingenico.

The information on this page is not intended to be a source of legal advice. Therefore, you should not rely on the information provided herein as legal advice for any purpose, and should always seek the legal advice of competent counsel in your jurisdiction.