Visa, Amex Dump CardSystems Over Data Breach, MasterCard Sets August Deadline

Visa and American Express have announced their intention to stop working with CardSystem Solutions, the data processor under fire for its announcement last month that 40 million credit card records had been hacked from its databases.

John Perry, CardSystems' President and CEO, sounded a warning when he announced the impending defection of two of the company's largest customers. "If Visa and American Express do not reconsider, the effect of their decision on thousands of our merchants is likely to be significant and could disrupt the operation of their payment card system," Perry said in a statement. "Many of those merchants will need to find a new payment processor, obtain new software, and retrain their employees on a new software system."

MasterCard, meanwhile, has required that Cardystems submit a detailed data security compliance plan by August 31, 2005.

posted by Consumer Help Web Editorial Team at 10:51 AM |