The heavy lifting to accommodate EMV formating will not be done by POS applications, but rather by the EMV device itself!
To my friends:
We are one of the many POS vendors who have been drifting along with periodic updates on our software making them ever so secure with each release.
We all by now are aware of the EMV liability shift that is occurring by October 1, 2015. The group that I have been calling the “I’ll take my chances crowd” are now starting the herding impulse running to make sure that all merchants have the new equipment in place. Estimates range from six to eight billion dollars worth of equipment sales and service will be what the American businesses have to absorb soon to meet with the compliance mandates.
The technical shift that few are talking about (excluding the terminal manufacturers) is the amount of processing power that EMV requires and the amount of change that is required for this paradigm shift of processing. The "I’ll take my chances crowd" will try to make the world the same as it has always been. EMV is a game changer. It is not a mere change on two or three blobs of data.
It requires most POS Integrators to entirely rewrite their applications.
The primary tact for the industry using stand-alone terminals is what I call “replacement strategy!” Replace the magstripe terminal with a terminal that is EMV certified. For a factor of 2X-3X the current price for units in the market—you get EMV certification. This works but not for the Integrators!
But as the POS vendors and integrators are discovering is that EMV requires a full functioning computer to read the IC chips, negotiate the communications, and pass results to and from a Payment processor. Add NFC for ApplePay and Google Wallet and you have an industrial strength high end (high memory addressable) device. That little EMV chip will be flashable using this new computer.
The processing that used to be done purely in the POS application side is now shifting to the POS device (computer). This shift once realized is adding time for POS vendors to learn and ultimately will mean that POS vendors will be late to the party with their newly integrated systems.
Receipts will be different. Storage and retrieval of token ID’s will be different. The reading of IC chips is different, The protocols and related libraries will be different. Even the primary security protocol is changing to “TLS/SSL!” Merchant agreements will be rewritten in some part due to gateways and payment processors who are “approved” to handle EMV transactions. Change ....change....change.
In other words, throw out the software applications that have been evolving over 30 years now, start fresh, and shift to the new ways. Simplify and let the heavy lifting be done with the device.
As Steve Jobs once told technical resource people at a developers conference “once you arrive at the new place or destination, burn the boats! There is no turning back now!
For the little guy......