Maximum customer engagement and end-to-end security delivers advanced pos solutions that keep retailers ahead

Payments terminals are a powerful part of the overall retail experience, according to Tony Saunders, Marketing Director of VeriFone. He believes that today’s devices, while addressing retailers’ business needs for optimum security and greater return on investment, must also appeal to, and engage more effectively with, the consumer. They must conform to current PCI guidelines and, where possible, take these to the next level, providing better security and instilling customer confidence.

Customer Focused Platforms

Designed as a retail 'fraud-buster', Chip and PIN has brought an unexpected twist - it has put the payment terminal in the hands of the consumer; creating a unique customer 'touch-point' that is now ripe for exploitation.  Speed, availability and performance are still vital; but so too is the ability to make transactions easier, more convenient and also pleasurable for a population whose attitudes towards technology have changed dramatically.

In the past year alone, high-tech, touch screen software has come-of-age at a time when many retailers are ready to upgrade their POS systems.  Touch screen penetration now dominates mobile phones, portable navigation units, gaming and other applications - redefining the ways in which consumers expect to interact with devices.

At the same time, fraudsters are becoming more techno-savvy; stealing transaction data is big business.   Forrester Research says that a single, significant payments breach involving thousands of records could run into millions of pounds.  These findings are confirmed by the Ponemon Institute's "2008 Annual Study: U.S. Cost of a Data Breach" which showed that the average cost per reporting company was more than $6.6 million per breach.   Industry experts also point out it can take years to regain customer loyalty once it has been lost, if it can be regained at all. 

Taking Security All the Way

While the latest Payment Card Industry Data Security Standard (PCI DSS) aims to reduce this threat, it has too many points of potential failure.  Unencrypted copies of data may be stored, or encryption keys may be held within insecure devices.  No two retail systems are alike, so no single solution can protect against all data breaches. Security monitoring and auditing can be difficult or costly, particularly on the most complex networks. Plus any system change, no matter how small, is costly and time-consuming and requires end-to-end recertification. 

With PCI, it isn't possible to lock down every element of a payment system infrastructure to prevent cardholder data breaches.  However, it is possible to virtually eliminate data compromises through end-to-end encryption.  By changing the 'game plan' and focusing on securing data itself rather than just the pipeline, VeriFone believes the industry may be able to beat the fraudsters.   

To effectively secure cardholder information from lapses in PCI DSS compliance, all primary account number (PAN) and magnetic-stripe card track data must be encrypted at the POS - from the instant the card is inserted until the transaction is received by the processing host.  That means end-to-end encryption. 

At VeriFone, we believe that protecting data from compromise is not only achievable but is the next logical step for the industry.  While others are debating the best ways to implement it, we have already developed a viable end-to-end encryption solution, called VeriShield Protect. 

VeriShield Protect encrypts card holder information at the exact instant of card swipe, inside a secure, trusted device; and keeps it encrypted throughout the 'enterprise'; without incurring additional processing overhead, network impact or POS and application software changes. It also provides an encryption monitoring system that ensures 100% compliance and provides instant problem notification.

Creating Powerful POS Solutions

So, how can retailers adopt end-to-end encryption while building on the obvious consumer appeal of new interface technologies, in a cost-conscious retail environment, while still retaining a healthy return on investment? 

As a global manufacturer and one of the world's leading terminal suppliers, VeriFone has the answer.  We are taking advantage of reduced component costs, economies of scale and the latest IT and encryption innovations to evolve our VX product portfolio.  We have created a new generation of terminals that reflect BOTH consumers' aspirations and retailers' stringent operational requirements.   

Our new VX products all feature industry-leading performance with ARM11 advanced processors and large standard memory configurations.  Sophisticated and stylish, they deliver colourful, interactive content, and are designed to appeal to modern users - making transactions easier, more intuitive and convenient.

Designed to PCI PED 2.0 specifications, the VX Evolution systems also incorporate VeriShield Protect to support end-to-end encryption of card data.   The new terminals also incorporate standard USB ports for maximum flexibility, and optionally include integrated contactless for acceptance of contactless cards, fobs and mobile-phone initiated payments:

A Portfolio Packed with Appeal

The new VX portfolio comprises four new systems powered by Verix architecture to ensure backward compatibility and eliminate any need for retraining of sales, support and deployment resources.

• VX 520 - A countertop workhorse, featuring standard 160MB memory for unprecedented performance and security as well as multiple communications options, including dial, Ethernet, and GPRS quad-band, as well as battery capability for mobile use

• VX 680 - A leap forward in mobile payment featuring more memory, more power, and large color display touch screen and full range of communications options for WiFi, GPRS, CDMA and Bluetooth connectivity

• VX820 - A fully-loaded programmable PIN pad featuring a 3.5" color display and touch screen, with a back-lit keypad that is easier to use and builds upon user-based design for easier interaction and data entry. Connectivity is simplified with a single-port link to USB, Ethernet or serial communications.

• VX 820 DUET - A stylish, hand-over payment device with integrated PIN pad functionality that consolidates the functions of a modern countertop device and a separate PIN pad into one, easy-to-handle device for both consumer and merchant use.

Market availability of the VX 520 and VX 820 is scheduled for May, while the VX 820 and VX 820 DUET are scheduled before the end of the calendar year.

For further information on VeriFone, VeriShield Protect or the new VX Evolution products contact