advertisement
advertisement

PCI Finally Addresses Vending Machines, Phones And Kiosks That Take Cards. For Retailers, Though, It’s Still Tricky

Written by Evan Schuman
October 19th, 2011

The PCI Council has updated its PIN Transaction Security (PTS) rules to include newer types of card-accepting systems, including mobile, kiosks and vending machines, but left vague are many of the most practical retail issues. The new PTS version 3.1 is aimed at device manufacturers. Given that retail shops need to be populated with compliant devices, though, how much time will device makers have to make upgrades? How long will existing systems be given a pass?

The guidelines are generally filled with commonsense security restrictions. Consider B14: ” There is no mechanism in the device that would allow the outputting of a private or secret clear-text key or clear-text PIN, the encryption of a key or PIN under a key that might itself be disclosed, or the transfer of a clear-text key from a component of high security into a component of lesser security.” But there is nothing about timing, schedules or when retailers can—or should—include the new requirements in RFPs.

The closest the guidelines get to referencing existing hardware is a brief comment that such components can be reused in newly approved systems.

“The PCI PTS POI approval framework is oriented to the evaluation of integrated PIN entry devices (i.e., device where PIN entry functionality is in a secure logical and physical perimeter). However, it allows the re-use of previously approved individual components or their combinations (card readers, display, keypads, or secure processors) into the approval process of integrated PIN entry devices,” the guidelines say. “The POS Terminal Integration Evaluation Module ensures that the integration of previously approved components does not impair the overall security as stated in security requirements. This module also supports the cost-effective maintenance of components. This module includes security management requirements applicable to the integrated device.”

Beyond the mechanisms of the hardware, the PCI issues raised by devices—especially kiosks and vending machines—are also legal. As Wal-Mart discovered back in 2009, there are two contractual questions. First, if the device is handled by a third-party firm, can that firm truly—regardless of what it promises, even in its contract—take on all of your legal risks? Will that firm’s representation that it has achieved PCI compliance on the hardware in your store be sufficient to protect you in case of a breach?

Then there’s the other type of legal headache, the one that falls under the heading of “Anyone Can Sue You Over Anything At Any Time. The Only Question Is Whether They Can Win.” If you’re a major (read: deep-pocketed) retail chain and your brand and colors are plastered all over the kiosk and it’s sitting in the middle of your floor, how can you argue with the attorney representing your customer that said customer had a reasonable expectation that you were standing behind the payment-card transaction? And further, that customers would have never given their Visa cards to a machine had they known it was controlled by the Acme Kiosk Outsourcing Company? The loyalty and confidence you’ve built with your brand will come back to haunt you.


advertisement

One Comment | Read PCI Finally Addresses Vending Machines, Phones And Kiosks That Take Cards. For Retailers, Though, It’s Still Tricky

  1. Steve Sommers Says:

    PCI’s timing is perfect. They release their PIN guidlines for kiosks approximately two weeks after the Durbin Amendment killed the small ticket purchase rates. I know, this guildline is not kiosk specific, I just find the timing kind of amusing.

Leave a Reply

Readers, specifically those who want to comment on a story:
Our Comment SPAM system is getting very aggressive these days and has been blocking legitimate comments. If you post a comment and don't see it appear within 2 hours or so, can you please send a heads-up to customer-service@storefrontbacktalk.com? Ideally, please include the time you posted the comment. That will allow us to try and hunt for it. Thanks! P.S. We're working on fixing the system, but we don't want to lose any valuable comments in the meantime.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 17,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.