Crunch Time For Payment Processors

New rules for payment processors have recently come into effect, to prevent another CardSystems-type incident. Bank Systems & Technology is running an article on efforts that processors are making to bring themselves into line with the new rules:

Bank Systems & Technology: Crunch Time For Payment Processors:

"...As of June 30, any entity that stores, processes, or transmits cardholder data had to comply with the Payment Card Industry Data Security standards, which require access-control measures, regular network monitoring and testing, and an information-security policy. Annual security audits and quarterly network scans also are required.

Just how many transaction-processing companies are compliant with the Payment Card Industry requirements isn't clear. Visa has published a list of about 150 compliant services providers, which it says represent most major payment processors. But Ordonez says there are hundreds of smaller processors for whom compliance costs could cause many to fold.

Companies that experience breaches and are found not to be in compliance face stiff penalties. Banks are responsible for ensuring compliance of the service providers they use and their merchant's service providers. Visa can fine banks up to $500,000 per incident for any merchant or service provider that's compromised and not compliant..."