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You can use the  uDemo tool to execute a command to Poll Card Reader. Look for "DATA_DUKPT Key Valid". This means your reader is injected with a data encryption key.

Use uDemo to run

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an MSR transaction and then look for Encrypted data or a KSN:Image Modified

In uDemo, execute a Start MSR command (1), then swipe a card. Look for "Track 1 Encrypted" (2) or "Track 2 Encrypted" (3) or "KSN:" (4) or "Encryption Type:" and "Key Type:" (5).

Use uDemo to run an EMV transaction and then retrieve an encrypted tag like 5A and see that the data is encrypted:

In uDemo, execute a Star EMV Trans (2), dip a card. Image Added 

Then retrieve an encrypted tag(1) like 5A(2). Look for encrypted data(4).Image Added

See also: