POS Level 3 Certification: Key Requirements and Developer Challenges

When it comes to Point of Sale (POS) Level 3 certification, there’s no such thing as a “wish list.” This is not a nice-to-have process — it is a mandatory requirement for any merchant, software developer, or payment gateway that wants to process EMV (chip card) payments legally. Certification is overseen by the merchant’s acquiring bank and guided by strict standards from each card network, leaving no room for shortcuts.

Level 3 certification, sometimes referred to as end-to-end certification or brand certification, validates that a payment solution can securely handle transactions all the way from the POS terminal to the processor. Because each card brand publishes its own certification criteria, businesses must obtain the official list of requirements directly from their acquirer before they begin.

What Level 3 Certification Involves

To understand what’s at stake, it helps to break down the key elements of Level 3 certification. At its core, certification is about proving that both the technology and the transaction flow are reliable, secure, and fully compliant with EMV and brand-specific rules.

First, the payment terminal itself must be EMVCo Level 1 certified. This means the hardware meets global standards for physical and electrical communication between the card and the device. Without this baseline certification, the terminal cannot reliably read chip cards or ensure secure data transfer.

Next, the software running inside the device - known as the Level 2 kernel - must also be certified. The kernel is responsible for carrying out the EMV transaction steps in the correct sequence, including card authentication, risk management, and cryptographic functions. Level 2 certification ensures the software can manage all of these processes according to EMVCo’s strict specifications.

On top of the certified hardware and kernel sits the POS application software. This software bridges the certified components and manages the end-to-end payment experience for merchants and customers. To pass Level 3 certification, this software must be built in accordance with the security specifications of each card brand, including encryption, secure data storage, and protection against tampering.

Certification also requires validating the entire transaction flow. Every payment scenario - from purchases and refunds to voids and error conditions - must be tested to ensure it behaves exactly as the card brand and acquirer expect. Even rare or failure scenarios, such as communication errors or declined transactions, are scrutinized to confirm that the system handles them without compromising security.

Finally, the process involves extensive testing and documentation. Card networks and acquirers provide a long list of test cases that must be executed and recorded in detail. Each result is submitted for review, and only after official approval can the payment solution be considered fully certified. This stage alone can typically take weeks or months to complete, depending on the complexity of the system.

Making Certification Easier

While Level 3 certification is essential, few developers would describe it as smooth. The process is known for being time-consuming and technically demanding, often slowing down product development cycles. 

“If EMV Level 3 certification is the goal, then integration with card and host simulators should also be considered from the beginning … developers can start to build daily, weekly, or monthly test sets which help to shorten the release cycle time.”
—  US Payments Forum

If developers could reimagine the process, several improvements would rise to the top of their wish list.

For example, testing timelines are often a major bottleneck. Certification can stretch into months, and for complex solutions, delays may extend even longer. Shorter turnaround times would help developers bring innovative products to market more quickly.

Another pain point is the lack of a unified test case framework. Each card brand provides its own test scripts, many of which overlap. A centralized or standardized approach would dramatically reduce duplication and wasted effort.

The tools themselves also create challenges. Certification platforms are notoriously difficult to configure and troubleshoot, often requiring days of setup before meaningful testing can even begin. Simplifying this process would reduce friction and lower the barrier to entry for new developers.

Communication with acquirers and card brands can also be inconsistent. As noted in our October 2024 guide, “misalignment or delays in communication between stakeholders can slow down the entire process,” highlighting how such gaps often stall certification efforts. Developers often find themselves waiting for clarification on requirements or feedback on test results. Faster, clearer support - or even built-in guidance within the testing systems - could eliminate unnecessary delays.

Some card networks have experimented with self-certification for certain transaction types, allowing developers more autonomy in testing. Expanding this practice could give integrators greater control and reduce reliance on third-party approvals.

Finally, automating repetitive tasks, such as generating and updating EMV configuration files, would remove one of the most tedious aspects of the certification cycle.  Paragon highlights this need for efficiency in our guide How To Streamline the Payment Card Certification Process, where we advocate for automation and improved workflows to shorten testing cycles and reduce manual strain on developers.

The Bottom Line

There’s no avoiding it: POS Level 3 certification is critical for secure EMV chip card processing. It proves that the entire payment chain - from hardware and software to transaction handling and documentation - meets the rigorous requirements of card networks and acquirers. For developers and merchants, the process can feel overwhelming, but it is also the only path to compliance.

While certification will always involve a high degree of scrutiny, streamlined tools, better testing frameworks, and more responsive support could make the journey more manageable. Until then, developers must prepare for a process that is as demanding as it is necessary.

This is where specialized tools and utilities can make a difference. Paragon’s EMV testing solutions are designed to help automate repetitive tasks, accelerate transaction validation, and simplify documentation workflows, giving developers the resources they need to move through certification with greater confidence and efficiency. By reducing manual effort and providing flexible test environments, Paragon helps organizations focus less on certification roadblocks and more on delivering secure, innovative payment experiences.

If you’re interested in learning more about how Paragon can help enhance and expand your organization's payment testing operations, contact us today.