It is not recommended to change the default magnetic card reader (MCR) configuration settings unless absolutely necessary. Contact your FAE for instructions on how to change the magnetic head settings…
Yes, the ROM code proposes the applet mechanism that allows to add extra processing to the downloaded data. This added process can be the handling of the encrypted data.
Yes, they have one, stored in ROM. This secure bootloader can not circumvented and always starts at reset. They used digital signature for secure update and secure boot.
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The applet mechanism can be seen as dynamically adding features to the ROM secure bootloader. These features can be encryption management, tests execution, external memories (NAND, QSPI flash) trusted…