Certification of EMV solutions start to finish are expensive, and take months to complete. A separate certification has to be done for each credit card processor, and every device that we plan to use for EMV, which creates an enormous amount of work, time and expense that simply can’t be justified. As a result, we will have to choose one or two of our top integrated partners, do the EMV certification specifically for them, and if the customer wants EMV, they will have to work with this ISO. As I said before, many of the smaller ISO’s are going to get squeezed out simply because there aren’t enough hours in a day to do a certification for every single ISO who wants to work with us.
Because the EMV rollout has yet to really begin, it remains to be seen how quickly it will be adopted, and if many merchants will just forego being EMV compliant because of the prohibitive cost involved, as well as the low risk for this type of fraud in the hospitality industry. We’ve already seen how bad the rollout went in the UK, and how difficult it was in Canada despite the Canadian market having very few credit card processors in comparison to the U.S.. So I would anticipate a very slow, clumsy rollout in the U.S., and we don’t want to be pioneers in a process that will certainly have a rocky start. Thus, our goal is to have one EMV capable integrated partner by Q3/Q4 of 2015, and any additional EMV certifications we would do will be on a case by case basis. We also have no intention to do EMV certifications for processors/ISO’s who are not integrated partners.
Future POS, Inc.