What is the Technical Safety Device?

Electronic cash registers work with digital data. To ensure that this data cannot be subsequently changed, deleted or otherwise manipulated , the so-called technical security device (TSE) is integrated into the POS system. The TSE is therefore a type of module that can be used to seamlessly track the recording of all cash register transactions.

Why was the TSE introduced?

Whether in Munich's top restaurants or in the normal retail trade, there are black sheep everywhere who would like to bypass the tax office. After all, no one notices if 20 euros are missing here and there, right? To prevent business owners from getting any ideas, the tax office has introduced the Principles for the Proper Keeping and Retention of Books, Records and Documents in Electronic Form and for Data Access (GoBD). Yes - this administrative regulation is actually called exactly that. In short, the GoBD obliges proper bookkeeping. This includes the inalterability of cash receipts as well as an obligation to keep individual records. Fortunately, however, you only need to remember that the TSE is a kind of tool with which the GoBD is enforced in practice.

How does the TSE work exactly?

The technical guideline for TSE was developed by the German Federal Office for Information Security (BSI). This guideline is based on three pillars.

• The TSE safety module: Two modules are used here. The Secure Module Application (SMA) and the Crypto Service Provider (CSP). Together, these components ensure that entries into the cash register are recorded in full without exception. It also prevents the cash register data from being manipulated retrospectively.
• The TSE storage medium: As a business owner or entrepreneur, you are obliged to store all digital records for the next ten years. This is where the storage medium comes into play, guaranteeing compliance with this legal retention period.
• The TSE interface: Once the cash register data has been entered, it is prepared for export via the TSE interface and made available. This means that the cash register data can be transferred to the cash auditor quickly, securely and without detours during a cash register inspection by the tax office.

Sounds complicated, and it is. It's good that you don't have to concern yourself with the technical details. Because the POS manufacturers will take care of that for you. There are basically two ways in which a TSE can be integrated into the POS software:

• TSE hardware solution: Here, the TSE is integrated as an additional, external storage medium. Examples are a USB stick or an SD card.
• TSE cloud solution: With this variant, all data is automatically signed and stored online via the cloud. No additional hardware is required.

Both variants have their advantages and disadvantages, which we describe in more detail in a separate article.

Who integrates the TSE into the cash register?

The type of technical security device is specified by the manufacturer of the respective POS system. The manufacturer also takes care of the technical integration of the TSE and ensures that the POS system meets all other legal requirements. As the owner of a store or company, you do not have to integrate the TSE yourself. However, you may only use a model that complies with current laws and regulations and that has been approved by the POS manufacturer. And it is precisely these regulations that have been adapted once again as of 01 January 2023.

Which cash registers require a TSE?

You have purchased your electronic cash register before November 25, 2010 or after January 02, 2020? The cash register has not yet been equipped with a TSE? Then this model may no longer be used as of April 01, 2021. By the final deadline of December 31, 2022 at the latest, your electronic cash register must contain a technical security device. If your electronic cash register cannot be retrofitted for technical reasons, it must be replaced by a compliant model. If this is not the case, you could face a fine of up to 25,000 euros! However, there is still one exception: sales carts or weekly market stalls with open store cash registers are not affected by the regulation - at least so far. Apart from that, we recommend that you switch to a digital cash register system. Because this also has many advantages independent of the TSE.

What does the integration of the TSE cost?

A question that many business owners such as florists, bakers or owners of decorative stores ask themselves. But we can reassure you. Especially the so-called cloud TSE can be set up very quickly and the integration is extremely cost-efficient. Setting up the hardware TSE also involves only a small amount of effort. Here, however, it must be clarified in advance whether your POS system is technically ready for integration or first needs to be upgraded. By the way: Both options are tax-deductible as business expenses! Our tip: If you choose the all-in-one POS system from LocaFox, the TSE is directly integrated - and completely free of charge!

Can the TSE fail?

Technical complications cannot be ruled out with any device. Electronic cash registers with TSE are no exception. If the TSE should actually fail, you must note the exact time period. In this case, however, modern digital POS systems send an automatic message anyway and the damage can be repaired as quickly as possible.

Where can I learn more about electronic cash registers with TSE?

Do you have questions about the TSE or the deadlines and obligations? As a provider of an intelligent all-in-one POS system, we will be happy to advise you. Our solution is already in use in numerous retail companies and has proven itself many times over. Your business can also count on us!

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