Earlier quoted context omitted.
Worked in the payment industry for years. Visa/Mastercard do absolutely nothing to verify that companies are not storing Pin codes. The HSM is required for communication with them only.
That's not correct the QSA will validate that the device does not store PIN codes or the that the merchant does not store anything they are not allowed. Devices that accept cards need to comply with PED/PTS security requirements including very strict physical security requirements which are validated by PCI council approved laboratories and firms. You are not getting a device on the market or usable with any merchane…
The question is, how Chinese banks coax Visa into allowing them using them.