The Associated Press is reporting that VISA is ordering all of its card-issuing banks to cut all ties with CardSystems after VISA concluded that the company was not compliant with security requirements and could not get its stuff together.
This is the equivalent of the "death penalty" and I expect that it will be a loud wake-up call for all third-party processors of personal information. I am sure that other card issuers will be soon to follow.
Via KVOA TV in Tuscon: Visa to cut ties with card processor at center of massive breach.
UPDATE: AMEX is following suit according to AP via Forbes: Update 2: Visa to Cut Ties With Card Processor - Forbes.com.