Acquirers often use innovative point-of-sale (POS) technology to differentiate their offering to merchants. The design of POS technology is driven by, amongst other things, business requirements, technology advancements, costs and security standards.
A POS technology manufacturer does not need an ADI, AFSL or ACL licence, unless it plans to become an acquirer, a bank, or a financial service provider.
Manufacturers usually have a relationship with an acquirer who is interested in addressing a market need or adding new functionality.
The relationship can have different levels. At a minimum, the acquirer will purchase and connect the manufacturer’s device to their existing network. Some manufacturers also provide services such as switching services or fleet maintenance, in which case the onus is on the acquirer to ensure the manufacturer meets the relevant IAC rules.
Compliance with AusPayNet
Manufacturers will need to comply with AusPayNet certification for all card accepting devices or solutions including ATMs and POS, PIN-entry devices and unattended devices that accept card transactions in Australia. See here for more information.
Under AusPayNet’s process the manufacturer must get the device evaluated by an approved evaluation facility before submitting it to AusPayNet for approval. See here for a list of these facilities.
AusPayNet also has an evaluation process for new or non-standard technologies that do not meet existing security standards. Its purpose is to ensure new devices have appropriate security protections and help minimise fraud. Usually acquirers will sponsor a manufacturer in this process.
Once AusPayNet clears a new payment terminal it is added to the list of approved devices here.