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The Procurement Administration publishes announcements and updates on various subjects from time to time
New Central Tender for Terminals that Support EMV the Standard
The Government Procurement Administration in the Accountant Generals Division of the Ministry of Finance (hereinafter: Tender Editor), intends to publish a central tender in coming weeks, for the purchase of secure solutions for physical clearing of credit cards required by current regulation: Terminals that Support EMV the Standard (The Tender).
A central tender is a tender for all government ministries and auxiliary units and the winning provider will be required to provide service throughout the country.
This publication is intended to allow relevant Tender bidders time to make evaluations.
It will be clarified that this notice does not obligate the Tender Editor in any way and the determining wording of the Tender, its terms and conditions and equipment requested under it shall all be determined by the published Tender.
Background:
On 27.11.2019, The Bank of Israel published an outline for accelerating implementation of the EMV standard in Israel.
Government ministries conducting different transactions are required to use terminals after adoption of the standard by various clearers. The purpose of the forthcoming Tender is to provide a solution for all government ministries and auxiliary units that charge citizens through a credit card clearance terminal or other digital means based on credit cards such as digital wallets and payment apps at physical positions that serve customers.
Israel is implementing the payment solution in the Split mechanism.
As part of the split mechanism in each transaction, the clearer is selected dynamically according to the identity of the issuing operator in that transaction, while there are three credit card companies in Israel (Isracard, Max and CAL), who are allowed to both issue credit cards and operate clearing transactions. The split is done with all three.
Description of the required solution:
A terminal that supports manufacturer credit and includes EMV support, through which the split mechanism can be implemented.
In order to implement the split mechanism in a terminal that supports manufacturer credit, it will be necessary to establish a dedicated clearing terminal with each of the credit companies for each ministry or service type.
Therefore, the terminals required by the government should include a multi-terminal solution so it will be possible to route transactions to three (at least) different IBA terminals on the same physical terminal.
It should be emphasized that there are positions where the number of services is greater than 1 and therefore the number of terminals will include a higher number of Automated Bank Services terminals (the number of services is times 3).