The issuing bank is only able to provide a payment guarantee to the merchant, if basic security and functional requirements to the terminal and the network processing are met. These requirements are laid down in the technical annex to the electronic cash agreement.
Compliance with the security requirements has to be proven for any security relevant component in a network as well as for the entire network of a network provider by a security evaluation carried out by an independent security evaluation laboratory. In addition to that compliance with functional requirements has to be demonstrated during a functional testing.