www.sena.com March, 2002June, 2002

POSLink seriesSerial-Ethernet connectivity

for credit card payment terminals

SENA

www.sena.com

Contents

EmbeddedConnectivity

• The Market Opportunity• POSLink 100/400• Benefits• System Configuration• Technical Details:

– Technical Specification– Software Architecture– Hardware Architecture

• System Comparison– Legacy off-line payment processing system– IP-based off-line payment processing system

• References • Target Customers• Implementation Issues

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The Market Opportunity

• Broadband Service Providers (in South Korea)– 25M Internet users, 8.9M Broadband households

nation-wide (70% of total households, DSL 5.6M, Cable 3.3M), 45M population

– USD20~30 per month– Three major providers for DSL & Cable

• Credit Card Processors (in South Korea)– 10 processors nation-wide– 1.5M payment terminals in the market– Very competitive market

• Limitation– Still locked into dial-up or proprietary leased line– Long processing time for dial-up: 20secs– High monthly service charge for leased line: USD50+

per line per terminal

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POSLink 100/400

Internet

Merchant Location

Credit cardProcessor Location

Payment Processing Server

POSLink 100POSLink 400

Payment terminal

Merchant LANOr Broadband line

A box for IP-based off-line credit card payment processing

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POSLink 100/400

• Secure transaction– Full SSL Data Encryption for secure credit card transaction

• Lightspeed transaction– Overall processing time less than 2 secs

• Multiple terminals with single broadband account (POSLink 400)

• Remote firmware download & monitoring for payment terminals

• Extremely low transition cost• Out-of-box installation without any modification of existing d

evices: Just hook up & go• Platform alternatives

– Firmware based platform with 16bit microprocessor– Linux based platform with 32bit microprocessor

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Benefits• Broadband Service Providers

– Looking for new revenue sources– Saturated market for households and small offices– More than 1.5M new subscribers that are POS terminals

and still increasing• Credit card processors

– Strong needs to provide quality services to dominate market

– Easy system maintenance with Internet-based remote device & system management

– Seamless integration of on-line and off-line payment system

– Generate new revenue model with Internet-based services such as on-line lottery & joint promotion with merchants

• Merchants– Lower monthly cost for credit card transaction– Fast credit card payment processing time– Easy installation and relocation of payment terminals

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System Configuration• Enable serial-line based credit-card payment terminals

to be connected to Ethernet or broadband Internet• Transaction via TCP/IP with SSL encryption

PaymentAuthentication

Server

Internet

ADSL/Cable modemHUB

211.115.67.188

66.12.89.34

Requestpayment

authentication

Initiate payment transaction

Approvepayment

transaction

Notifytransaction complete

ADSL/CableISP

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Technical Specification

EmbeddedConnectivity

POSLink 100 POSLink 400

POS Terminal Interface

Serial 1 port Serial 4 ports

•Serial speeds: 1200bps to 19200bps •Flow Control: Hardware RTS/CTS •Signals: Rx, Tx, RTS, CTS, DTR, DSR, GND

Network Interface •10 Base-T Ethernet with RJ45 Ethernet connector•Supports static and dynamic IP address 

Protocols ARP, IP/ICMP, TCP, UDP, Telnet, DHCP client, PPPoE

Security User ID & PasswordData Encryption: SSL

Management •Management Tools: Serial console port •Firmware: Stored in Flash memory and downloadable via serial console or telnet

LEDs •Power, Ready, 10 Base-T: Link, Act •Serial: Rx, Tx for each serial port

Power Supply voltage = 7.5V ~ 30V DC Supply current = 140mA nominal

Environmental •Operating temperature: 5° to 50°C•Storage temperature: -40° to 66°C

Dimension & Weight 95 mm L x 80 mm W x 25 mm H(3.7 in x 3.1 in x 1.0 in) 200g

230 mm L x 153 mm W x 30 mm H(9 in x 6 in x 1.2 in)960g

Approvals FCC(A), CE(A), MIC

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Software Architecture• Encryption algorithm (SSL, IPSEC)

– SSL(Secure Socket Layer) as a basic encryption method• Asymmetric key exchange, Popular method in PC-based credit card transaction

– Flexible TCP/IP stack software and the encryption software• Easy-to-customize to customer’s requirement

PPPoE

VDMEmulation

SerialCommunication

EncryptionDecryption

Ethernet & ARP

TCP/IP

Serial raw data from/to the payment terminal

VDM Emulation data & raw credit info

Raw credit info.

Encrypted credit info.

Cable or Ethernet packetADSL packet

Encrypted credit info.ADSL을사용할 경우

Cable 또는 인터넷전용선 사용할 경우

PPPoE

VDMEmulation

SerialCommunication

EncryptionDecryption

Ethernet & ARP

TCP/IP

Serial raw data from/to

VDM Emulation data & raw credit info

Raw credit info.

Encrypted credit info.

Cable or Ethernet packetADSL packet

Encrypted credit info.ADSL Cable or Ethernet

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Hardware Architecture

EthernetController

ROM(프로그램저장 )

RAM( 프로그램메모리 )

MCUInternal bus

Ethernet

IP4CAT

Serial LevelConverter

UART

Cable/ADSLModem,Router

CreditAuthorization

TerminalRS232

EthernetController

ROM

RAM

MCUInternal bus

Ethernet

IP4CAT

Serial LevelConverter

UART

Cable/ADSLModem,Router

Credit Card Payment

TerminalRS232

POSLink

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System Comparison

Legacy off-line payment processing System

• Phone-line based system– Charge per transaction

• The more the transaction, The higher the maintenance cost

– Slow overall processing time for payment terminal– No data encryption required

• Proprietary leased-line based system– Flat rate but expensive– Fast overall processing time compared to phone-line– No data encryption required– Leased line service providers do not invest for infrastructures

PSTN ModemLeased Line

Modem

PSTN/Leased Line Modem pool

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System Comparison

IP-based off-line payment processing system• Connect to Ethernet or broadband Internet (ADSL, Cable)• Flat & lower monthly rate• Fast overall processing time• Benefits from the shared line connection• Secure transaction is the key

– Data Encryption: Industry standard SSL (Secure Socket Layer)

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Phone-lineProprietaryleased-line

Internet(ADSL, Cable)

System Comparison

Charged by the number of

phone calls = 4 cents/call

Flat rate per line= $65 for 4 line multiple

Flat rate per line = $23/monthMonthly Fee

20 sec 5 sec 2 secTransaction

Time

For low-volume transaction &

Small retail shop

- For large-scale retailer- Saturated infrastructure but no investment plan by service providers

- Good for high-volume transaction

- Good for existing Internet users

Comment

In Korean market

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References

• KMPS: processor & acquirer– Field test at merchants location completed with 16bit-based

POSLink100– 16bit-based POSLink400 – Payment terminal by domestic manufacturer– Close an initial supply contract of POSLink100

• KFTC: processor & acquirer– Feasibility test with 32bit & Linux based POSLink– IDphone: Payment terminal manufacturer

• Demonstration for other 7 domestic processors with payment server emulation software

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Target Customers

• Credit card processors and acquirers• Payment terminal manufacturer• POS system integrator or value added resellers• Broadband service providers• Merchants as end users

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Implementation Issues

• Communication with authorization server – For servers that doesn’t support SSL

• The authentication server for credit card payment processing may have to be modified for server-side data encryption/decryption for the case of legacy dial-up & leased line based server.

• SENA’s tool kit with standard SSL– For servers that supports SSL

• No server-side job required

• Legacy POS terminal interface– Serial interface with POS terminal– Dial-up only terminals without any serial port

• Dial-in interface is to be supported according to the payment terminal

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SENA Technologies, Inc.info@sena.com

Phone:+82-2-529-7025Fax: +82-2-573-7710

Web Address: http://www.sena.com210 Yangjae-dong Seocho-guSeoul 137-130, South Korea

Contact SENA