About that, I can only say that Chinese android POSes do everything in software, for sure, without any hsm present.
The question is, how Chinese banks coax Visa into allowing them using them.
The question is, how Chinese banks coax Visa into allowing them using them.
I think the GP is confused on how a POS works, POS isn't a POI most of them don't touch the credit card they just talk to the reader, most readers today are P2PE closed loop solutions so the only thing the POS does is sends to the reader charge the next card $X the reader will then reply if the transaction went through or not and that's it.
The reader itself will talk to the acquiring bank or the payment provider in a point to point encrypted closed loop and the merchant would never see any credit card details.