EFTPOS Terminology…
The following list is a basic list of Terminology, there is much much more, but those listed are relevant mainly to Terminal Users and has been written in plain English where possible.
EFT- POS – Electronic Funds Transfer – Point of Sale
Acquirer – the institution, or it’s agent, which acquires from the card acceptor the financial data relating to a transaction, and which initiates that data into an interchange system.
Acquirer Bank – The Bank you have your Eftpos facilities with.
EMV – Derived from the initiators Europay, Mastercard and Visa – is a global security standard for the interaction between chip cards and terminals. Chip cards include an electronic chip in addition to the standard magnetic stripe.
3DES – Triple DES – Derived from Triple(3) Data Encryption Standard – is a form of data encryption that scrambles sensitive information such as PIN numbers before sending it to the bank. This provides a high level of security for the transfer of sensitive information.
3DES & EMV – All EFTPOS users in New Zealand must comply with these standards, which are updated from time to time by the banking institutions. The deadline was 1 January 2008, has been extended to June 2008. Disconnections will commence for non compliant terminals (these deadlines were for the ETSL/Paymark network).
ETSL – Electronic Transaction Services Ltd – (Also trades as “Paymark”) – New Zealand’s biggest Eftpos Network, handling approximately 70% of Eftpos functions. Serving Westpac, ASB, BNZ and National Banks customers.
EftposNZ – The ANZ owned Eftpos Network, also serving National Bank customers.
Log On – exchange of authentication information and encryption keys between a terminal and acquiring bank rending the terminal able to process online transactions.
MAC – (Also called Keyset number) – A checksum on a message calculated by the Pin Pad using a secure key (the MAC key). The MAC is then added into the message so the receiver can verify that the message contents have not been tampered since leaving the sender, or to serve as a proof of identity of the sender. Pin Pads cannot be changed on terminals without changing the details with the Eftpos Network.
MACING Error – this occurs when the Pin Pad looses it’s Keyset. The Keyset is the unique numbers assigned to the Pin Pad by the eftpos network which enable it to log on and transact with the bank. If the Pin Pad looses it’s Keyset, the Pin Pad will needs software reloaded and returned to the Eftpos network for a new MAC/Keyset to be loaded.
MANPAN – (Also known as Card Not Present) – Is when an Eftpos Transaction takes place when the Credit Card is not present – The card number is manually entered into the terminal along with the Expiry date, and the transaction takes place.
PED – Pin Entry Device – the secure customer interface module of a payment terminal.
PCI PED – Payment Card Industry PIN Entry Device – a security specification for EFT terminals, designed to secure the PIN information stored in a terminal from fraudulent activity.
Refund Card – A merchant can apply to the Bank for a Refund Card. Not all eftpos merchants are setup for refunds. Security of the refund card can become an issue.
Settlement – the closure and reconciliation of the current transaction batch.
Settlement Window – the times that a Settlement can occur during a 24hr period – for example a business can only “Settle” within the Window time, if a Manual Settlement is not completed by the business by the end of the “Settlement Window time”, then the monies cut to the Bank automatically.
Examples:
A Motel – may choose a time at Noon as all the business from the night before has taken place.
A Restaurant – may choose a time as 1 to 2am, as all the days business has completed.
A Retailer – may choose a time between 4.00pm and 10.00pm. This may cover their shorter hours on a Saturday and Sunday, or a Thursday or Friday late night.
Settlement Cutover – is the process of making the settlement – can only be in the “Window Time” as above. For transactions taking place after a Cutover, the moneys would go into the next days Eftpos Settlement amount. Amounts form banks go weekdays to your account the following day, Saturday and Sunday transactions go to the bank on Monday night . ASB is the only bank that has 7 day a week settlements with money going to your account the next day everyday – ASK How – if you want ASB 7 day settlement banking.
Settlement Inquiry – is the process of making an inquiry of a previous days settlement. For the Restaurant, this may be done the next day after trading each day, as they may still not be in the restaurant at 2am. This can also be used for checking the days trading at a point halfway through the day, done as inquiry on the terminal, not as an cutover.
Switch – central system that receives EFT transactions and forwards then through to one of many acquirers. The Eftpos Network acts as the switch between different Banks and Accounts at each bank.
Transmission Error – A transaction that has not completed due to a communication error, either bad or no phone connection, or a Maccing error on the Pin Pad stopping the terminal from Logging On.
Chip Card vs Magnetic Cards…
Why are Chip Cards better than magnetic stripes? Two main reasons: At present the information held on a magnetic stripe is able to be fraudulently extracted using devices such as skimming machines. This information cannot be extracted from a chip. Chip Cards have the ability to store more information so that the card and its rightful owner can be confirmed more readily.
Can Chip Cards be used for other purposes? Because of the storage capacity on a chip card there is a wide scope for them to be used for other purposes. This includes loyalty, Medical Records, Visa and Passport information.
Will Chip Cards work on both Eftpos terminals and ATM machines? Yes, to find out more about ATM machines please contact your bank.
Where does EMV™ come from? EMV™ originated in Europe with the credit card companies Europay, MasterCard and Visa but is now a worldwide standard.
Which Eftpos terminals will be affected? Every Eftpos terminal in New Zealand is affected by these new standards.
Is it necessary for me to upgrade if all my Eftpos transactions are done manually? Yes, all devices which process electronic payments must be compliant.
How long before I need to upgrade again? In future regular upgrades of Eftpos equipment and software will be required. – See Upgrade dates above.
Will this change my bank fees? For information on merchant services fees please contact your bank.
What is Liability Shift? This is the shift in liability for a fraudulent credit card transaction. Currently the bank holds this responsibility, however this may be shifted to the merchant if they fail to comply with EMV™. For further information on how this liability shift may affect you please contact your bank.