The card schemes have decided that payment terminals which do not meet the latest security requirements must be replaced by 1 January 2014 at the latest. This is in order to ensure that the payment terminals are always equipped to counter the risk of fraud and misuse.
In this announcement you can read more about the reason for the requirement, and you can check whether your payment terminal is amongst those that need to be replaced by 1 January 2014.
Replacement of certain payment terminals
Using payment cards in payment terminals must always be safe. For that reason, a number of chip terminals will be replaced by 1 January 2014. The terminals that need to be replaced are terminals that do not meet the so-called Payment Card Industry PIN Entry Device (PCI-PED) requirements set by the international card schemes. In Denmark this mostly applies to terminals acquired before 2008, but a small number of terminals sold after 2008 may also be affected.
The security features of the terminals must be updated to ensure that they remain equipped to counter the risk of fraud and misuse. The above requirements apply to Dankort. These requirements are comparable to the requirements set by the international card schemes (MasterCard and Visa).
Here on Nets website you will find an overview of those payment terminals that will be discontinued and those that are still expected to gain approval after 1 January 2014. You can find the overview
here (in Danish).
Since 1 January 2010, all new payment terminals have required approval under the international security specifications PCI-PED (PIN protection), EMV (chip specifications) and PA-DSS (terminal software). From 1 January 2014 this will also apply to existing payment terminals.
Background
The reason why the terminals need replacing is that the card schemes are working to ensure that payment cards, systems and terminals always are prepared to counter the risk of fraud and misuse. Nets Denmark has set the date for Dankort customers as 1 January 2014. Visa Europe has set the general deadline in Europe as 1 January 2013. Teller, which is the largest acquirer for international cards in Denmark, has agreed with Visa to set the date for Teller customers as 1 January 2014 – the same date that Nets Denmark has set for Dankort.
Security and future-proofing
Since security is an international issue, Nets Denmark A/S has chosen to adopt the recommendations and requirements of the international card companies to allow the security features of the terminals to be updated for both Dankort and international cards. We also want to ensure that the merchants are given ample time to prepare, so that they can make the right choices when acquiring new terminals. In this respect, there are a number of considerations that a merchant should make, including
- functionality
- design
- mobile or stationary
- accessibility (also consider persons with disabilities)
- future-proofing (e.g. check that the terminal is able to accept contactless payments)
The merchant may also want to ask its terminal supplier which terminal best meets the needs of the merchant and its customers.
What the merchant need to do
If
the list published on the Nets website indicates that a payment terminal needs to be replaced, we suggest that the merchant take contact to his terminal supplier well before 1 January 2014 in order to establish which terminal best suits the merchant.